4. Merchandising Operations
Periodic Inventory - Purchases
Multiple Choice
Multiple ChoiceNever Satisfied Incorporated (NSI) purchased 400 units of High Quality Goods for $300,000 on account. After inspecting the goods, they decided that 300 units did not meet their standards and NSI received a refund for these goods. If NSI uses a periodic inventory system, the entry to record the return of goods would include:
A
A credit to Inventory for $225,000
B
A debit to Accounts Payable for $225,000
C
A credit to Purchase Discounts for $225,000
D
A credit to Purchases for $225,000
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