A company using the perpetual inventory system purchased inventory worth $ 8 , 0 0 0 on account with credit terms of 1 1 5 , n 3 0 Defective inventory was received, but instead of a return, an allowance of $ 1 , 5 0 0 is given The allowance is before the invoice is paid The journal entry to record the allowance would be q , A $ 1 , 5 0 0 debit to Merchandise Inventory and $ 1 , 5 0 0 credit to Accounts Payable B $ 1 , 4 8 5 debit to Merchandise Inventory and $ 1 , 4 8 5 credit to Accounts Payable C $ 1 , 5 0 0 debit to Accounts Payable and $ 1 , 5 0 0 credit to Merchandise Inventory D $ 1 , 4 8 5 debit to Accounts Payable and $ 1 , 4 8 5 credit to Merchandise Inventory

Question

A company using the perpetual inventory system purchased inventory worth $ 8 , 0 0 0 on account with credit terms of 1 1 5 , n   3 0   Defective inventory was received, but instead of a return, an allowance of $ 1 , 5 0 0 is given  The allowance is before the invoice is paid  The journal entry to record the allowance would be q , A   $ 1 , 5 0 0 debit to Merchandise Inventory and $ 1 , 5 0 0 credit to Accounts Payable B   $ 1 , 4 8 5 debit to Merchandise Inventory and $ 1 , 4 8 5 credit to Accounts Payable C   $ 1 , 5 0 0 debit to Accounts Payable and $ 1 , 5 0 0 credit to Merchandise Inventory D   $ 1 , 4 8 5 debit to Accounts Payable and $ 1 , 4 8 5 credit to Merchandise Inventory

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A company using the perpetual inventory system purchased inventory worth $ 8 , 0 0 0 on account with credit terms of 1 1 5

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