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Banner Ltd., bought merchandise for $900, terms 2/10, n/30. If Banner returns $300 worth of the goods to the vendor, the entry to record the return should include a Multiple Choice O Credit to Purchases Returns and Allowances of $294 Debit to Accounts Payable of $300 None of the other alternatives are correct Debit to Discounts Lost of $6 Debit to Purchases Returns and Allowances of $294

Banner Ltd., bought merchandise for $900, terms 2/10, n/30. If Banner returns $300 worth of the goods to the vendor, the entry to record the return should include a Multiple Choice O Credit to Purchases Returns and Allowances of $294 Debit to Accounts Payable of $300 None of the other alternatives are correct Debit to Discounts Lost of $6 Debit to Purchases Returns and Allowances of $294

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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Banner Ltd., bought merchandise for $900, terms 2/10, n/30. If Banner returns $300 worth of the goods to the vendor, the entry to record the return should include a Multiple Choice Credit to Purchases Returns and Allowances of $294 Debit to Accounts Payable of $300 None of the other alternatives are correct Debit to Discounts Lost of $6 Debit to Purchases Returns and Allowances of $294
Transcribed Image Text:Banner Ltd., bought merchandise for $900, terms 2/10, n/30. If Banner returns $300 worth of the goods to the vendor, the entry to record the return should include a Multiple Choice Credit to Purchases Returns and Allowances of $294 Debit to Accounts Payable of $300 None of the other alternatives are correct Debit to Discounts Lost of $6 Debit to Purchases Returns and Allowances of $294
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Step 1: Introduction

The journal entries are prepared to record the transactions on regular basis. The accounts payable represents the amount due for payment to suppliers. 

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