A company purchased $2,400 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned $500 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is: Multiple Choice O Debit Accounts Payable $2,400; credit Cash $2,400. Debit Merchandise Inventory $1,900; credit Cash $1,900. O Debit Accounts Payable $1,900; credit Cash $1,900. О Debit Cash $1,900; credit Accounts Payable $1,900. Debit Accounts Payable $1,900; credit Merchandise Inventory $57; credit Cash $1,843.
A company purchased $2,400 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned $500 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is: Multiple Choice O Debit Accounts Payable $2,400; credit Cash $2,400. Debit Merchandise Inventory $1,900; credit Cash $1,900. O Debit Accounts Payable $1,900; credit Cash $1,900. О Debit Cash $1,900; credit Accounts Payable $1,900. Debit Accounts Payable $1,900; credit Merchandise Inventory $57; credit Cash $1,843.
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 11MC: A retailer returns $400 worth of inventory to a manufacturer and receives a full refund. What...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,