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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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