A company that uses a perpetual inventory system purchased inventory on account and later returned goods worth $700 to the vendor. Which of the following would be the correct journal entry to record these returns? A. Accounts Payable 700 Merchandise Inventory 700 B. Merchandise Inventory 700 Accounts Payable 700 C. Purchase Returns 700 Accounts Payable 700 D. Accounts Payable 700 Purchase Returns 700

A company that uses a perpetual inventory system purchased inventory on account and later returned goods worth $700 to the vendor. Which of the following would be the correct journal entry to record these returns? A. Accounts Payable 700 Merchandise Inventory 700 B. Merchandise Inventory 700 Accounts Payable 700 C. Purchase Returns 700 Accounts Payable 700 D. Accounts Payable 700 Purchase Returns 700

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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M IN V F. R | B. H. G. 9- 4. 8. 2$ ) MacBook Pro b. a. Under a perpetual inventory system, record the journal entries required for the above transactions. If an amount box does not require an entry, leave it blank. Travis Company purchased merchandise on account from a supplier for $5,400, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period.
Purchase-Related Transactions The Stationery Company purchased merchandise on account from a supplier for $17,400, terms 1/10, n/30. The Stationery Company returned merchandise with an invoice amount of $2,300 and received full credit. a. If The Stationery Company pays the invoice within the discount period, what is the amount of cash required for the payment? b. Under a perpetual inventory system, what account is credited by The Stationery Company to record the return?
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Travis Company purchased merchandise on account from a supplier for $14,000, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period. Under a perpetual inventory system, journalize these transactions. If an amount box does not require an entry, leave it blank. a. b.
Sales transaction Journalize the following merchandise transaction using the net method under a perpetual inventory system. A . Sold merchandise on account $18,000 with terms 1/10, and/30. Because of the goods sold was $10,800. If an amount box does not require an entry leave it blank. B. Received payment less the discount. If an amount box does not require an entry, Leave it blank. See. Refunded $600 to customer for defective merchandise that was not returned. If an amount box does not require an entry, leave it blank.
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