On April 1st, Gates Gems received merchandise that was purchased on account from Gem Warehouse inthe amount of $1,000. $250 worth of the merchandise was damaged. Gates Gems returned the damagedmerchandise and kept the rest. What is the journal entry to record this transaction?Debit Accounts Receivable/Gem Warehouse, $250; credit Purchases, $250Debit Accounts Receivable/Gem Warehouse, $1,000; credit Purchases $1,000O Debit Accounts Payable/Gem Warehouse, $250; credit Purchases Returns and Allowances,$250Debit Accounts Payable/Gem Warehouse, 1,000; credit Purchases Returns and Allowances,$1,000

Answered: amount of $1,00

Business

Accounting

amount of $1,00

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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Question

100%

On April 1st, Gates Gems received merchandise that was purchased on account from Gem Warehouse in
the amount of $1,000. $250 worth of the merchandise was damaged. Gates Gems returned the damaged
merchandise and kept the rest. What is the journal entry to record this transaction?
Debit Accounts Receivable/Gem Warehouse, $250; credit Purchases, $250
Debit Accounts Receivable/Gem Warehouse, $1,000; credit Purchases $1,000
O Debit Accounts Payable/Gem Warehouse, $250; credit Purchases Returns and Allowances,
$250
Debit Accounts Payable/Gem Warehouse, 1,000; credit Purchases Returns and Allowances,
$1,000

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