Assuming that a ABC merchandise business purchased 500 numbers of Office chairs for OMR 40 each on 1st December 2020 from JKD merchandise business under the credit terms of 5/20, n/60. On 3rd December 2020 ABC merchandise business discovers that 100 numbers of office chairs are office table. Therefore, the business returned the goods to JKD merchandise. On 5th December 2020 the ABC merchandise business settles full cash. The business uses periodic inventory system. Which of the following journal entry is correct for the ABC merchandise business on 5th December 2020? a. Debit Cash OMR 15,200 Debit Discount OMR 800 Credit Accounts receivable OMR 16000 b. Debit Accounts payable OMR 16,000 Credit Cash OMR 15,200 Credit Discount OMR 800 c. Debit Accounts payable OMR 4000 Credit Purchase returns and allowances OMR 4000 d. Debit Purchase OMR 20,000 Credit Accounts payable OMR 20,000
Assuming that a ABC merchandise business purchased 500 numbers of Office chairs for OMR 40 each on 1st December 2020 from JKD merchandise business under the credit terms of 5/20, n/60. On 3rd December 2020 ABC merchandise business discovers that 100 numbers of office chairs are office table. Therefore, the business returned the goods to JKD merchandise. On 5th December 2020 the ABC merchandise business settles full cash. The business uses periodic inventory system. Which of the following journal entry is correct for the ABC merchandise business on 5th December 2020? a. Debit Cash OMR 15,200 Debit Discount OMR 800 Credit Accounts receivable OMR 16000 b. Debit Accounts payable OMR 16,000 Credit Cash OMR 15,200 Credit Discount OMR 800 c. Debit Accounts payable OMR 4000 Credit Purchase returns and allowances OMR 4000 d. Debit Purchase OMR 20,000 Credit Accounts payable OMR 20,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assuming that a ABC merchandise business purchased 500 numbers of Office chairs for OMR 40 each on 1st December 2020 from JKD merchandise business under the credit terms of 5/20, n/60. On 3rd December 2020 ABC merchandise business discovers that 100 numbers of office chairs are office table. Therefore, the business returned the goods to JKD merchandise. On 5th December 2020 the ABC merchandise business settles full cash. The business uses periodic inventory system. Which of the following journal entry is correct for the ABC merchandise business on 5th December 2020?
a.
Debit Cash OMR 15,200 Debit Discount OMR 800 Credit Accounts receivable OMR 16000
b.
Debit Accounts payable OMR 16,000 Credit Cash OMR 15,200 Credit Discount OMR 800
c.
Debit Accounts payable OMR 4000 Credit Purchase returns and allowances OMR 4000
d.
Debit Purchase OMR 20,000 Credit Accounts payable OMR 20,000
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