Nizwa Business Solution (NBS) follows perpetual inventory method. NBS purchase Merchandise 100 units of 3-in-1 desktop Printers at a cost of RO 70 each on credit on 10th March 2019. Terms of purchase are 2/20, n/30. NBS discovers that 40 units of the printer are 4-in-1 printer and returns to the supplier for a full refund on 12th March 2019. Which of the following is the correct entry for Merchandise Return on 12th March 2019 in the books of NBS? a. Dr. Accounts payable RO 2,800 Cr. Purchase return RO 2,800 b. Dr. Merchandise inventory RO 7,000 Cr. Accounts payable RO 7,000 c. Dr. Accounts payable RO 2,800 Cr. Merchandise Inventory RO 2,800 d. Dr. Accounts payable RO 7,000 Cr. Merchandise Inventory RO 7,000
Nizwa Business Solution (NBS) follows perpetual inventory method. NBS purchase Merchandise 100 units of 3-in-1 desktop Printers at a cost of RO 70 each on credit on 10th March 2019. Terms of purchase are 2/20, n/30. NBS discovers that 40 units of the printer are 4-in-1 printer and returns to the supplier for a full refund on 12th March 2019. Which of the following is the correct entry for Merchandise Return on 12th March 2019 in the books of NBS? a. Dr. Accounts payable RO 2,800 Cr. Purchase return RO 2,800 b. Dr. Merchandise inventory RO 7,000 Cr. Accounts payable RO 7,000 c. Dr. Accounts payable RO 2,800 Cr. Merchandise Inventory RO 2,800 d. Dr. Accounts payable RO 7,000 Cr. Merchandise Inventory RO 7,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Nizwa Business Solution (NBS) follows perpetual inventory method. NBS purchase Merchandise 100 units of 3-in-1 desktop Printers at a cost of RO 70 each on credit on 10th March 2019. Terms of purchase are 2/20, n/30. NBS discovers that 40 units of the printer are 4-in-1 printer and returns to the supplier for a full refund on 12th March 2019. Which of the following is the correct entry for Merchandise Return on 12th March 2019 in the books of NBS?
a.
Dr. Accounts payable RO 2,800 Cr. Purchase return RO 2,800
b.
Dr. Merchandise inventory RO 7,000 Cr. Accounts payable RO 7,000
c.
Dr. Accounts payable RO 2,800 Cr. Merchandise Inventory RO 2,800
d.
Dr. Accounts payable RO 7,000 Cr. Merchandise Inventory RO 7,000
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