McIntyre Company (Perpetual Inventory System) made a purchase of merchandise on credit from Marvin Company on August 8, for $8,000, terms 3/10 n/30. On August 17, McIntyre makes the appropriate payment to Marvin. The entry on August 17 for McIntyre Company is: Debit Accounts Payable 8,000. Credit Cash 8,000. Debit Accounts Payable 7,760. Credit Cash 7,760. Debit Accounts Payable 8,000. Credit Purchase Returns and Allowances 260. Credit Cash 7,760. Debit Accounts Payable 8,000. Credit Inventory 240. Credit Cash 7,760.
McIntyre Company (Perpetual Inventory System) made a purchase of merchandise on credit from Marvin Company on August 8, for $8,000, terms 3/10 n/30. On August 17, McIntyre makes the appropriate payment to Marvin. The entry on August 17 for McIntyre Company is: Debit Accounts Payable 8,000. Credit Cash 8,000. Debit Accounts Payable 7,760. Credit Cash 7,760. Debit Accounts Payable 8,000. Credit Purchase Returns and Allowances 260. Credit Cash 7,760. Debit Accounts Payable 8,000. Credit Inventory 240. Credit Cash 7,760.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
McIntyre Company (Perpetual Inventory System) made a purchase of merchandise on credit from Marvin Company on August 8, for $8,000, terms 3/10 n/30. On August 17, McIntyre makes the appropriate payment to Marvin. The entry on August 17 for McIntyre Company is:
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Debit Accounts Payable 8,000. Credit Cash 8,000. |
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Debit Accounts Payable 7,760. Credit Cash 7,760. |
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|
Debit Accounts Payable 8,000. Credit Purchase Returns and Allowances 260. Credit Cash 7,760. |
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Debit Accounts Payable 8,000. Credit Inventory 240. Credit Cash 7,760. |
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