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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.

FINANCIAL ACCOUNTING
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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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.
Transcribed Image Text: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.
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