Berry Company purchased inventory on account for $1,000 with credit terms 2/10, n/30 on May 2. The company uses a perpetual inventory system. On May 4, the company was granted a $200 allowance by the seller because the goods did not meet specifications. If Berry pays the balance in full on May 11, Berry's journal entry will include a. a debit to Sales Discounts for $20. O b. a credit to Cash for $800. O c. a debit to Accounts Payable for $784. O d. a credit to Inventory for $16.

Berry Company purchased inventory on account for $1,000 with credit terms 2/10, n/30 on May 2. The company uses a perpetual inventory system. On May 4, the company was granted a $200 allowance by the seller because the goods did not meet specifications. If Berry pays the balance in full on May 11, Berry's journal entry will include a. a debit to Sales Discounts for $20. O b. a credit to Cash for $800. O c. a debit to Accounts Payable for $784. O d. a credit to Inventory for $16.

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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