A company using the perpetual inventory system purchased inventory worth $550,000 on account with credit terms of 3/15, n/45. Defective inventory of $50,000 was returned 3 days later, and the accounts were appropriately adjusted. If the company paid the invoice 25 days later, the journal entry to record the payment would be ________. A. $500,000 debit to Accounts Payable and $500,000 credit to Cash B. $515,000 debit to Accounts Payable, $15,000 credit to Merchandise Inventory, and $500,000 credit to Cash C. $550,000 debit to Accounts Payable and $550,000 credit to Cash D. $550,000 debit to Accounts Payable, $535,000 credit to Cash, and $15,000 credit to Merchandise Inventory
A company using the perpetual inventory system purchased inventory worth $550,000 on account with credit terms of 3/15, n/45. Defective inventory of $50,000 was returned 3 days later, and the accounts were appropriately adjusted. If the company paid the invoice 25 days later, the journal entry to record the payment would be ________. A. $500,000 debit to Accounts Payable and $500,000 credit to Cash B. $515,000 debit to Accounts Payable, $15,000 credit to Merchandise Inventory, and $500,000 credit to Cash C. $550,000 debit to Accounts Payable and $550,000 credit to Cash D. $550,000 debit to Accounts Payable, $535,000 credit to Cash, and $15,000 credit to Merchandise Inventory
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...
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A company using the perpetual inventory system purchased inventory worth $550,000 on account with credit terms of 3/15,
n/45. Defective inventory of $50,000 was returned 3 days later, and the accounts were appropriately adjusted. If the company paid the invoice 25 days later, thejournal entry to record the payment would be ________.
n/45. Defective inventory of $50,000 was returned 3 days later, and the accounts were appropriately adjusted. If the company paid the invoice 25 days later, the
$500,000
debit to Accounts Payable and
$500,000
credit to Cash$515,000
debit to Accounts Payable,
$15,000
credit to Merchandise Inventory, and
$500,000
credit to Cash$550,000
debit to Accounts Payable and
$550,000
credit to Cash$550,000
debit to Accounts Payable,
$535,000
credit to Cash, and
$15,000
credit to Merchandise InventoryExpert Solution
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