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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
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