Golden Furniture in Muscat follows periodic inventory method. The business Purchased Merchandise 100 study table at a cost of OMR 70 each under the terms of 3/20 n/60 on 1st March 2019. Golden Furniture discovers that 40 study table are office table. Therefore the business returns to the supplier for a full refund on 12th March 2019. Which of the following double entry will be correct assuming that the business paid to the supplier on 31st March 2019?
Golden Furniture in Muscat follows periodic inventory method. The business Purchased Merchandise 100 study table at a cost of OMR 70 each under the terms of 3/20 n/60 on 1st March 2019. Golden Furniture discovers that 40 study table are office table. Therefore the business returns to the supplier for a full refund on 12th March 2019. Which of the following double entry will be correct assuming that the business paid to the supplier on 31st March 2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Golden Furniture in Muscat follows periodic inventory method. The business Purchased Merchandise 100 study table at a cost of OMR 70 each under the terms of 3/20 n/60 on 1st March 2019. Golden Furniture discovers that 40 study table are office table. Therefore the business returns to the supplier for a full refund on 12th March 2019. Which of the following double entry will be correct assuming that the business paid to the supplier on 31st March 2019?
a.
Debit : Accounts payable RO 4200 Credit: Cash RO 4200
b.
Debit : Accounts payable RO 4200 Credit: Cash RO 4074 Credit Purchase discount RO 126
c.
Debit : Merchandise inventory RO 7000 Credit: Accounts payable RO 7000
d.
Debit : Accounts payable RO 2800 Credit: Merchandise inventory RO 2800
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