The journal entry to return inventory when the buyer uses the periodic system to the seller would include a Select one: a. debit to accounts receivable. b. credit to purchase returns. c. debit to merchandise inventory. d. credit to purchases.

d. credit to purchases.

Explanation:

With Periodic Method, Inventory Valuation is done at financial year end.

When Buyer Purchases Merchandise the entries will be :

Purchases (debit)

Trade Payable (credit)

When Buyer Returns Merchandise, the entries will be :

Trade Payable (debit)

Purchases Returns (credit)

Thus a Purchases Return lowers the Purchases amount, so in other words, the Purchases Account is Credited.

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