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On Dec. 20, X-Mart returned $100 of defective merchandise to its supplier. Demonstrate the required journal entry that X-Mart will record for the return, assuming the purchase was made on account and that X- Mart uses the periodic inventory system. Multiple choice question. Debit Accounts Payable $100 and credit Purchase Returns $100. Debit Purchases Returns and Allowances $100 and credit Accounts Payable $100. Debit Accounts Payable $100 and credit Cash $100. Debit Accounts Payable $100 and credit Merchandise Inventory $100.

On Dec. 20, X-Mart returned $100 of defective merchandise to its supplier. Demonstrate the required journal entry that X-Mart will record for the return, assuming the purchase was made on account and that X- Mart uses the periodic inventory system. Multiple choice question. Debit Accounts Payable $100 and credit Purchase Returns $100. Debit Purchases Returns and Allowances $100 and credit Accounts Payable $100. Debit Accounts Payable $100 and credit Cash $100. Debit Accounts Payable $100 and credit Merchandise Inventory $100.

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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Aa 162.

On Dec. 20, X-Mart returned $100 of defective merchandise to its supplier. Demonstrate the required journal entry that X-Mart will record for the return, assuming the purchase was made on account and that X- Mart uses the periodic inventory system. Multiple choice question. Debit Accounts Payable $100 and credit Purchase Returns $100. Debit Purchases Returns and Allowances $100 and credit Accounts Payable $100. Debit Accounts Payable $100 and credit Cash $100. Debit Accounts Payable $100 and credit Merchandise Inventory $100.
Transcribed Image Text:On Dec. 20, X-Mart returned $100 of defective merchandise to its supplier. Demonstrate the required journal entry that X-Mart will record for the return, assuming the purchase was made on account and that X- Mart uses the periodic inventory system. Multiple choice question. Debit Accounts Payable $100 and credit Purchase Returns $100. Debit Purchases Returns and Allowances $100 and credit Accounts Payable $100. Debit Accounts Payable $100 and credit Cash $100. Debit Accounts Payable $100 and credit Merchandise Inventory $100.
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