14)Ibri traders returned goods to Muscat mart, a supplier of RO 1,700, purchased on 8th May,2019. The payment is received with the discount of 3% from the supplier. How would you record this in the books of buyer under the Perpetual inventory system?a.Cash RO 1,649 Dr / Account payable RO 1,649 Crb.Cash RO 1,649 Dr / Merchandise inventory RO 1,649 Crc.Account payable RO 1,649 Dr / Merchandise inventory RO 1,649 Crd.Cash RO 1,700 Dr / Account receivable RO 1,700 Cr

Answer- A purchase return occurs when a buyer returns merchandise to a seller. When a buyer…

Answered: Ibri traders returned goods to Muscat…

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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14)

Ibri traders returned goods to Muscat mart, a supplier of RO 1,700, purchased on 8th May,2019. The payment is received with the discount of 3% from the supplier. How would you record this in the books of buyer under the Perpetual inventory system?

Cash RO 1,649 Dr / Account payable RO 1,649 Cr

Cash RO 1,649 Dr / Merchandise inventory RO 1,649 Cr

Account payable RO 1,649 Dr / Merchandise inventory RO 1,649 Cr

Cash RO 1,700 Dr / Account receivable RO 1,700 Cr

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