A company that uses the periodic inventory method purchases inventory of $1,000 on account with terms of 2/10 net/30. Defective inventory of $200 is returned 2 days later. Which of the following entries would be made to record the payment for the inventory if the payment is made 20 days later?

Question 4 options:

The accounting entry would be a $784 debit to Accounts Payable, a $16 debit to Purchase Discounts and an $800 credit to Cash.

The accounting entry would be an $800 debit to Accounts Payable and an $800 credit to Cash.

The accounting entry would be an $800 debit to Accounts Payable, a $16 credit to Purchase Discounts and a $784 credit to Cash

The accounting entry would be a $16 debit to Purchase Discounts, an $800 debit to Accounts Payable and a $816 credit to Cash.

A company sells merchandise for $1,000 on account with terms of 2/10 net/30. Defective merchandise of $200 is returned 2 days later. Which of the following entries would be made to record the cash receipt for the sale if the payment is received 20 days later?

Question 5 options:

The accounting entry would be a $16 debit to Sales Discounts, a $800 debit to Cash and a $816 credit to Accounts Receivable.

The accounting entry would be an $800 debit to Cash, a $16 credit to Sales Discounts and a $784 credit to Accounts Receivable.

The accounting entry would be a $784 debit to Cash, a $16 debit to Sales Discounts and an $800 credit to Accounts Receivable.

The accounting entry would be an $800 debit to Cash and an $800 credit to Accounts Receivable.

A company uses the perpetual inventory method. Which of the following entries would be made to record a $1,200 sale of merchandise on account? The merchandise had cost the company $800.

Question 9 options:

The accounting entry would be a $1,200 debit to Cost of Goods Sold and a $1,200 credit to Sales Revenue.

The accounting entry would be a $800 debit to Cost of Goods Sold and a $800 credit to Inventory.

The accounting entry would be a $1,200 debit to Accounts Receivable and a $1,200 credit to Sales Revenue.

Both B and C would be necessary to record the sale.

Question

A company that uses the periodic inventory method purchases inventory of $1,000 on account with terms of 2/10 net/30. Defective inventory of $200 is returned 2 days later. Which of the following entries would be made to record the payment for the inventory if the payment is made 20 days later?

Question 4 options:

	The accounting entry would be a $784 debit to Accounts Payable, a $16 debit to Purchase Discounts and an $800 credit to Cash.
	The accounting entry would be an $800 debit to Accounts Payable and an $800 credit to Cash.
	The accounting entry would be an $800 debit to Accounts Payable, a $16 credit to Purchase Discounts and a $784 credit to Cash
	The accounting entry would be a $16 debit to Purchase Discounts, an $800 debit to Accounts Payable and a $816 credit to Cash.

A company sells merchandise for $1,000 on account with terms of 2/10 net/30. Defective merchandise of $200 is returned 2 days later. Which of the following entries would be made to record the cash receipt for the sale if the payment is received 20 days later?

Question 5 options:

	The accounting entry would be a $16 debit to Sales Discounts, a $800 debit to Cash and a $816 credit to Accounts Receivable.
	The accounting entry would be an $800 debit to Cash, a $16 credit to Sales Discounts and a $784 credit to Accounts Receivable.
	The accounting entry would be a $784 debit to Cash, a $16 debit to Sales Discounts and an $800 credit to Accounts Receivable.
	The accounting entry would be an $800 debit to Cash and an $800 credit to Accounts Receivable.

A company uses the perpetual inventory method. Which of the following entries would be made to record a $1,200 sale of merchandise on account? The merchandise had cost the company $800.

Question 9 options:

	The accounting entry would be a $1,200 debit to Cost of Goods Sold and a $1,200 credit to Sales Revenue.
	The accounting entry would be a $800 debit to Cost of Goods Sold and a $800 credit to Inventory.
	The accounting entry would be a $1,200 debit to Accounts Receivable and a $1,200 credit to Sales Revenue.
	Both B and C would be necessary to record the sale.

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Question

A company that uses the periodic inventory method purchases inventory of $1,000 on account with terms of 2/10 net/30. Defective inventory of $200 is returned

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