Best Value Furniture Uses the Periodic Inventory System to Account

Multiple Choice

Best Value Furniture uses the periodic inventory system to account for its inventory.It purchased $2,000 of goods from its supplier but later returned $400 of the goods due to damage.Best Value would record the return by:

A) debiting Accounts Payable,crediting Purchases
B) debiting Sales Returns and Allowances,crediting Accounts Receivable
C) debiting Accounts Payable,crediting Purchases Purchase Returns and Allowances
D) debiting Purchase Returns and Allowances,crediting Accounts Payable