Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 12,

A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is:

Multiple Choice

  • Debit Merchandise Inventory $1,600; credit Cash $1,600.

  • Debit Accounts Payable $1,800; credit Cash $1,800.

  • Debit Accounts Payable $1,600; credit Cash $1,600.

  • Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568.

  • Debit Cash $1,600; credit Accounts Payable $1,600.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Issues In Social Science

Authors: Simon Grima, Ercan Özen, Hakan Boz

1st Edition

1800439318, 9781800439313

More Books

Students also viewed these Accounting questions

Question

When and how will strategy reviews take place?

Answered: 1 week ago

Question

Do you know how you will monitor progress?

Answered: 1 week ago