Homework Help is Here – Start Your Trial Now!
Business
Accounting
A company purchased $1.800 of merchandise on July 5 with terms 2/10, n/30. On July 7. it returned $200 worth of merchandise. On July 28, 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 merchandise return on July 7 is: Multiple Choice Debit Merchandise Inventory $1,600, credit Cash $1,600 Debit Merchandise Inventory $200, credit Accounts Payable $200 Debit Merchandise Inventory $200, credit Sales Returns $200 Debit Accounts Payable $200, credit Merchandise Inventory $200

A company purchased $1.800 of merchandise on July 5 with terms 2/10, n/30. On July 7. it returned $200 worth of merchandise. On July 28, 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 merchandise return on July 7 is: Multiple Choice Debit Merchandise Inventory $1,600, credit Cash $1,600 Debit Merchandise Inventory $200, credit Accounts Payable $200 Debit Merchandise Inventory $200, credit Sales Returns $200 Debit Accounts Payable $200, credit Merchandise Inventory $200

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter14: Adjustments And The Work Sheet For A Merchandising Business
Section: Chapter Questions
Problem 1SEA: ADJUSTMENT FOR MERCHANDISE INVENTORY USING T ACCOUNTS: PERIODIC INVENTORY SYSTEM Matt Henry owns a...
See similar textbooks
icon
Related questions
Question

please answer with explanation and working

 

A company purchased $1.800 of merchandise on July 5 with terms 2/10, n/30. On July 7. it returned $200 worth of merchandise. On July 28, 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 merchandise return on July 7 is: Multiple Choice Debit Merchandise Inventory $1,600, credit Cash $1,600 Debit Merchandise Inventory $200, credit Accounts Payable $200 Debit Merchandise Inventory $200, credit Sales Returns $200 Debit Accounts Payable $200, credit Merchandise Inventory $200
Transcribed Image Text:A company purchased $1.800 of merchandise on July 5 with terms 2/10, n/30. On July 7. it returned $200 worth of merchandise. On July 28, 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 merchandise return on July 7 is: Multiple Choice Debit Merchandise Inventory $1,600, credit Cash $1,600 Debit Merchandise Inventory $200, credit Accounts Payable $200 Debit Merchandise Inventory $200, credit Sales Returns $200 Debit Accounts Payable $200, credit Merchandise Inventory $200
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for discounts
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
College Accounting, Chapters 1-27 (New in Account…
College Accounting, Chapters 1-27 (New in Account…
Accounting
ISBN:
9781305666160
Author:
James A. Heintz, Robert W. Parry
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS