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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

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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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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