When goods previously purchased on account are returned for credit, the journal entry is
a. debit Accounts Payable; credit Purchases Returns and Allowances.
b. debit Purchases Returns and Allowances; credit Accounts Payable.
c. debit Purchases; credit Purchases Returns and Allowances.
d. debit Accounts Receivable; credit Purchases Returns and Allowances.
e. debit Purchases Returns and Allowances; credit Accounts Receivable.
Question 2
Which of the following is a characteristic that distinguishes government and not-for-profit organizations from business enterprises?
a. Borrowing is not a significant source of financing.
b. The resource providers often do not receive services commensurate with the amount of resources they provide.
c. Net income is an appropriate performance evaluation measurement for most of these organizations.
d. Accumulating wealth on behalf of its constituents is a key goal of the organization.
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