Answer:
Debit to Accounts Payable.
Explanation:
Using a perpetual inventory system, the entry to record the return of inventory previously purchased on account includes
Accounts Payable Dr.
Merchandise Inventory Cr.
In the periodic system the temporary Purchase Return and Allowances Accounts accumulates the cost of all returns and allowances during a period.
In periodic system each purchase, purchase returns, discounts, transportation in, transactions are recorded in separate temporary accounts.
