Livingston Company sells merchandise on account for $6,000 to Briggs Inc. on April 10 with credit terms 3/15, n/60. Briggs returns $1,000 of the merchandise on April 15. Briggs paid for the remainder of the goods within the discount period on April 20. What entry would Briggs make to record the return on April 15 if it uses the perpetual inventory system? a. Cash 1,000 Inventory 1,000 b. Accounts Payable 1,000 Inventory 1,000 c. Accounts Payable 970 Inventory 970 d. Purchase Returns 1,000 Inventory 1,000
Livingston Company sells merchandise on account for $6,000 to Briggs Inc. on April 10 with credit terms 3/15, n/60. Briggs returns $1,000 of the merchandise on April 15. Briggs paid for the remainder of the goods within the discount period on April 20. What entry would Briggs make to record the return on April 15 if it uses the perpetual inventory system? a. Cash 1,000 Inventory 1,000 b. Accounts Payable 1,000 Inventory 1,000 c. Accounts Payable 970 Inventory 970 d. Purchase Returns 1,000 Inventory 1,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Livingston Company sells merchandise on account for $6,000 to Briggs Inc. on April 10 with credit
terms 3/15, n/60. Briggs returns $1,000 of the merchandise on April 15. Briggs paid for the remainder of
the goods within the discount period on April 20. What entry would Briggs make to record the return on
April 15 if it uses the perpetual inventory system?
a. Cash 1,000
Inventory 1,000
b. Accounts Payable 1,000
Inventory 1,000
c. Accounts Payable 970
Inventory 970
d. Purchase Returns 1,000
Inventory 1,000
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