On February 16th, Gates Gems received merchandise that was purchased on account from GemWarehouse in the amount of $10,000. Half of the merchandise was damaged and they returned thedamaged merchandise and kept the rest. What is the journal entry to record this transaction?Debit Accounts Receivable/Gem Warehouse, 10,000; credit Purchases Returns andAllowances, $10,000Debit Accounts Payable/Gem Warehouse, $5,000; credit Purchases Returns and Allowances,$5,000Debit Accounts Receivable/Gem Warehouse, $10,000; credit Purchases, $10,000O Debit Accounts Receivable/Gem Warehouse, $5,000; credit Purchases $5,000

Normally in business transactions, merchandise are returned due to poor quality, damage or not…

On February 16th, Gates Gems received merchandise that was purchased on account from Gem Warehouse in the amount of $10,000. Half of the merchandise was damaged and they returned damaged merchandise and kept the rest. What is the journal entry to record this transaction?

On February 16th, Gates Gems received merchandise that was purchased on account from Gem Warehouse in the amount of $10,000. Half of the merchandise was damaged and they returned damaged merchandise and kept the rest. What is the journal entry to record this transaction?

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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