On March 15th, Gates Gems received merchandise they purchased on account from Jewelry Wholesalers in the amount of $2,500. The merchandise was not what they ordered, but they agreed to keep it for a reduction in price. Jewelry Wholesalers offered them a 10% reduction. What is the journal entry to record this transaction? Debit Accounts Payable/Jewelry Wholesalers, $250; credit Purchases Returns and Allowances $250 Debit Accounts Payable/Jewelry Wholesalers, $2,500; credit Purchases Returns and Allowances, $2,500 Debit Purchases, $2,500; credit Accounts Payable/Jewelry Wholesalers, $2,500 Debit Purchases, $250; credit Accounts Payable/Jewelry Wholesalers, $250

On March 15th, Gates Gems received merchandise they purchased on account from Jewelry Wholesalers in the amount of $2,500. The merchandise was not what they ordered, but they agreed to keep it for a reduction in price. Jewelry Wholesalers offered them a 10% reduction. What is the journal entry to record this transaction? Debit Accounts Payable/Jewelry Wholesalers, $250; credit Purchases Returns and Allowances $250 Debit Accounts Payable/Jewelry Wholesalers, $2,500; credit Purchases Returns and Allowances, $2,500 Debit Purchases, $2,500; credit Accounts Payable/Jewelry Wholesalers, $2,500 Debit Purchases, $250; credit Accounts Payable/Jewelry Wholesalers, $250

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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