Question 32 of 50 > A company using the perpetual inventory system purchased inventory worth $17,000 on account with credit terms of 1/10, 20. Defective inventory was received, but insad of a retum, an allowance of $1,200 is given. The allowance is granted before the invoice is paid. The journal entry to record the ailowance would be OA. $1,200 debill to Accounts Payable and $1,200 credit to Merchandise inventory OB. $1,200 debill to Merchandise Inventory and $1,200 credit to Accounts Payable OC. $1,188 debit to Accounts Payable and $1,188 credit to Merchandise Inventory OD. $1,188 debill to Merchandise Inventory and $1,188 credit to Accounts Payable
Question 32 of 50 > A company using the perpetual inventory system purchased inventory worth $17,000 on account with credit terms of 1/10, 20. Defective inventory was received, but insad of a retum, an allowance of $1,200 is given. The allowance is granted before the invoice is paid. The journal entry to record the ailowance would be OA. $1,200 debill to Accounts Payable and $1,200 credit to Merchandise inventory OB. $1,200 debill to Merchandise Inventory and $1,200 credit to Accounts Payable OC. $1,188 debit to Accounts Payable and $1,188 credit to Merchandise Inventory OD. $1,188 debill to Merchandise Inventory and $1,188 credit to Accounts Payable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Question 32 of 50 >
A company using the perpetual inventory system purchased inventory worth $17,000 on account with credit terms of 1/10, 20. Defective inventory was received, but insad of a retum, an
allowance of $1,200 is given. The allowance is granted before the invoice is paid. The journal entry to record the ailowance would be
OA. $1,200 debill to Accounts Payable and $1,200 credit to Merchandise inventory
OB. $1,200 debill to Merchandise Inventory and $1,200 credit to Accounts Payable
OC. $1,188 debit to Accounts Payable and $1,188 credit to Merchandise Inventory
OD. $1,188 debill to Merchandise Inventory and $1,188 credit to Accounts Payable
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education