Bud Company records purchases at invoice price, using the periodic inventory system. On July 5, Bud returned $12,000 of goods purchased on account to the seller. How would Bud record this transfer? ? Accounts Payable OA. Purchases Returns and Allowances 12.000 12,000 12,000 Accounts Payable OB. Purchases B. Purch 12,000 12,000 Accounts Receivable OC. Purchases Returns and Allowances 12,000 Cash 12,000 OD Purchases Returns and Allowances 12,000Accounts Payable A. Purchases Returns and Allowances 12.000 12,000 12,000 B. Purchases B. Purch 12,000 12,000 Accounts Receivable C. Purchases Returns and Allowances 12,000 Cash 12,000 D Purchases Returns and Allowances 12,000

The journal entry for recording the transaction of transfer is shown below:

Explanation:

The journal entry for recording the transaction of transfer is as  follows:

Accounts Payable A/cDr $12,000

     Purchases Returns and Allowances A/cCr  $12,000

Being record the transfer of goods which were purchased earlier

When the purchase was made, this would be passed or recorded as:

Purchase A/cDr  

      Accounts Payable A/cCr  

Being purchase recorded

So, when some of the purchase is returned, then the accounts payable account is debited against the account of Purchases Returns and Allowances with the amount of purchase return.

advanced placement tests

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

hope this