TB 06-60 On June 15, a retailer purchases merchandise on account On June 15, a retailer purchases merchandise on account from a supplier for $2,000 terms 3/10, n/30. On June 18, the retaler returns merchandise purchased for $600 for a reduction in the amount owing. On June 22, the retailer pays their account. Unde a perpetual inventory system the journal entry to record the payment includes:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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$1,358 will be credited to Cash, $1,358 will be debited to Accounts Payable.
$1,400 will be debited to Accounts Payable, $1,358 will be credited to Cash and $42 will be credited to
Inventory.
$1,400 will be credited to Cash, $1,358 will be debited to Accounts Payable, and $42 will be debited to
Inventory.
$1,358 will be credited to Cash, $1,400 will be debited to Accounts Payable and $42 will be credited to
Discounts.
Transcribed Image Text:$1,358 will be credited to Cash, $1,358 will be debited to Accounts Payable. $1,400 will be debited to Accounts Payable, $1,358 will be credited to Cash and $42 will be credited to Inventory. $1,400 will be credited to Cash, $1,358 will be debited to Accounts Payable, and $42 will be debited to Inventory. $1,358 will be credited to Cash, $1,400 will be debited to Accounts Payable and $42 will be credited to Discounts.
TB 06-60 On June 15, a retailer purchases merchandise on account
On June 15, a retailer purchases merchandise on account from a supplier for $2,000 terms 3/10, n/30. On June 18, the retailer
returns merchandise purchased for $600 for a reduction in the amount owing. On June 22, the retailer pays their account. Under
a perpetual inventory system the journal entry to record the payment includes:
Transcribed Image Text:TB 06-60 On June 15, a retailer purchases merchandise on account On June 15, a retailer purchases merchandise on account from a supplier for $2,000 terms 3/10, n/30. On June 18, the retailer returns merchandise purchased for $600 for a reduction in the amount owing. On June 22, the retailer pays their account. Under a perpetual inventory system the journal entry to record the payment includes:
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