Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
A company purchased $2,100 of merchandise on July 5 with terms 3/10,n/30. On July 7 , it returned $300 worth of merchandise. On July 12,
A company purchased $2,100 of merchandise on July 5 with terms 3/10,n/30. On July 7 , it returned $300 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetualinventory 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 $1,800; credit Cash $1,800. Debit Cash $1,800; credit Accounts Payable $1,800. Debit Accounts Payable $1,800; credit Merchandise Inventory $54; credit Cash $1,746. Debit Accounts Payable $2,100; credit Cash $2,100. Debit Accounts Payable $1,800; credit Cash $1,800
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66aadae40f675_18866aadae40b442.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/66aadae442223_18866aadae43ed07.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started