On 3/1, a company buys $5,000 of merchandise with terms 2/10, n/15. On 3/7, the company returns $500 of merchandise that is defective. What is the journal entry for the company for this purchase return? O a. Debit Inventory; Credit AR O b. Debit Inventory; Credit AP O c. Debit AP; Credit Inventory O d. Debit AP; Credit Sales Returns and Allowances

On 3/1, a company buys $5,000 of merchandise with terms 2/10, n/15. On 3/7, the company returns $500 of merchandise that is defective. What is the journal entry for the company for this purchase return? O a. Debit Inventory; Credit AR O b. Debit Inventory; Credit AP O c. Debit AP; Credit Inventory O d. Debit AP; Credit Sales Returns and Allowances

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 8E: Toby Company had the following sales transactions for March: Mar. 6Sold merchandise on account to...

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