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 paidthe full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journalentry to record the payment on July 12 is:Multiple ChoiceODebit Accounts Payable $2,400; credit Cash $2,400.Debit Merchandise Inventory $1,900; credit Cash $1,900.ODebit Accounts Payable $1,900; credit Cash $1,900.ОDebit Cash $1,900; credit Accounts Payable $1,900.Debit Accounts Payable $1,900; credit Merchandise Inventory $57; credit Cash $1,843.

Step 1: It is given that the company is following perpetual inventory system to record the journal…

Answered: A company purchased $2,400 of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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