A company purchased $2,300 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $450 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 Cash $1,850; credit Accounts Payable $1,850. Debit Merchandise Inventory $1,850; credit Cash $1,850.

A company purchased $2,300 of merchandise on July 5 with terms 2/10,n/30. On July 7 , it returned $450 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 Cash $1,850; credit Accounts Payable $1,850. Debit Merchandise Inventory $1,850; credit Cash $1,850. Debit Accounts Payable $2,300; credit Cash $2,300. Debit Accounts Payable $1,850; credit Cash $1,850. Debit Accounts Payable $1,850; credit Merchandise Inventory $37; credit Cash $1,813