Under the Perpetual Inventory System, in Addition to Making the Entry

Multiple Choice

Under the perpetual inventory system, in addition to making the entry to record a return of goods from a customer, a company would:

A) debit Merchandise Inventory and credit Cost of Goods Sold.
B) debit Cost of Goods Sold and credit Merchandise Inventory.
C) debit Sales and credit Cost of Goods Sold.
D) debit Purchases and credit Cost of Goods Sold.