An Electronics Retailer Purchases $25,000 of Computers on Account for Resale.The

Multiple Choice

An electronics retailer purchases $25,000 of computers on account for resale.The retailer returns $5,000 of computers to the supplier and receives a credit on their account.Under a perpetual inventory system the journal entry to record the returned goods will include:

A) $5,000 will be debited to Purchases Returns and $5,000 will be credited to Accounts Payable.
B) $5,000 will be debited to Accounts Payable and $5,000 will be credited to Inventory.
C) $25,000 will be debited to Accounts Payable and $25,000 will be credited to Inventory.
D) $20,000 will be credited to Inventory and $20,000 will be credited to Purchases.