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5) A company using the perpetual inventory system purchased inventory worth $500,000 on account with credit terms ol 3/15, n/45. Defective inventory of $50,000 was
5) A company using the perpetual inventory system purchased inventory worth $500,000 on account with credit terms ol 3/15, n/45. Defective inventory of $50,000 was returned 3 days later, and the accounts were appropriately adjusted to record the return. If the company paid the invoice 25 days later, the journal entry to record the payment would be A) $450,000 debit to Accounts Payable and $450,000 credit to Cash B) $500,000 debit to Accounts Payable and $500,000 credit to Cash C) $500,000 debit to Accounts Payable, $486,500 credit to Cash, and $13,500 credit to Merchandise Inventory D) $463,500 debit to Accounts Payable, $13,500 credit to Merchandise Inventory, and $450,000 credit to Cash
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