When shipping back inventory that was purchased on account


Question - When shipping back inventory (that was purchased on account) from a supplier, what is the correct journal entry? (Assume the periodic inventory system is used).

a. Cr Inventory, DrAccounts Payable

b. DrAccounts Payable, Cr Purchase Returns and Allowances

c. DrInventory, Cr Cost of Goods Sold

d. DrInventory, Cr Accounts Payable

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Accounting Basics: When shipping back inventory that was purchased on account
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