On February 28th, Gates Gems received merchandise they purchased on account from Diamonds Direct in the amount of $8,550. Some of the gems were delivered were different than what was ordered. Gates Gems decided they would keep the Gems if Diamonds Direct would give them a discount. Diamonds Direct offered a $1,500 discount and Gates Gems accepted. What is the journal entry to record this transaction? Debit Accounts Payable/Diamonds Direct, $1,500; credit Purchases Returns and Allowances $1,500 Debit Purchases, $8,550; credit Accounts Payable/Diamonds Direct, $8,550 Debit Purchases, $1,500; credit Accounts Payable/Diamonds Direct, $1,500 Debit Accounts Payable/Jewelry Wholesalers, $8,550; credit Purchases Returns and Allowances, $8,550

On February 28th, Gates Gems received merchandise they purchased on account from Diamonds Direct in the amount of $8,550. Some of the gems were delivered were different than what was ordered. Gates Gems decided they would keep the Gems if Diamonds Direct would give them a discount. Diamonds Direct offered a $1,500 discount and Gates Gems accepted. What is the journal entry to record this transaction? Debit Accounts Payable/Diamonds Direct, $1,500; credit Purchases Returns and Allowances $1,500 Debit Purchases, $8,550; credit Accounts Payable/Diamonds Direct, $8,550 Debit Purchases, $1,500; credit Accounts Payable/Diamonds Direct, $1,500 Debit Accounts Payable/Jewelry Wholesalers, $8,550; credit Purchases Returns and Allowances, $8,550

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Description: On February 28th, Gates Gems received merchandise they purchased on account from Diamonds Direct inthe amount of $8,550. Some of the gems were delivered were different than what was ordered. GatesGems decided they would keep the Gems if Diamonds Dir

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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