A company using the perpetual inventory system purchased inventory worth $550,000 on account with credit terms of 3/15, n/45. Defective inventory of $50,000 was returned 3 days later, and the accounts were appropriately adjusted. If the company paid the invoice 25 days later, the journal entry to record the payment would be ________. A. $500,000 debit to Accounts Payable and $500,000 credit to Cash B. $515,000 debit to Accounts Payable, $15,000 credit to Merchandise Inventory, and $500,000 credit to Cash C. $550,000 debit to Accounts Payable and $550,000 credit to Cash D. $550,000 debit to Accounts Payable, $535,000 credit to Cash, and $15,000 credit to Merchandise Inventory
A company using the perpetual inventory system purchased inventory worth $550,000 on account with credit terms of 3/15, n/45. Defective inventory of $50,000 was returned 3 days later, and the accounts were appropriately adjusted. If the company paid the invoice 25 days later, the journal entry to record the payment would be ________. A. $500,000 debit to Accounts Payable and $500,000 credit to Cash B. $515,000 debit to Accounts Payable, $15,000 credit to Merchandise Inventory, and $500,000 credit to Cash C. $550,000 debit to Accounts Payable and $550,000 credit to Cash D. $550,000 debit to Accounts Payable, $535,000 credit to Cash, and $15,000 credit to Merchandise Inventory
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A company using the perpetual inventory system purchased inventory worth $550,000 on account with credit terms of 3/15,
n/45. Defective inventory of $50,000 was returned 3 days later, and the accounts were appropriately adjusted. If the company paid the invoice 25 days later, thejournal entry to record the payment would be ________.
n/45. Defective inventory of $50,000 was returned 3 days later, and the accounts were appropriately adjusted. If the company paid the invoice 25 days later, the
$500,000
debit to Accounts Payable and
$500,000
credit to Cash$515,000
debit to Accounts Payable,
$15,000
credit to Merchandise Inventory, and
$500,000
credit to Cash$550,000
debit to Accounts Payable and
$550,000
credit to Cash$550,000
debit to Accounts Payable,
$535,000
credit to Cash, and
$15,000
credit to Merchandise InventoryExpert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education