Banner Ltd., bought merchandise for $900, terms 2/10, n/30. If Banner returns $300 worth of the goods to the vendor and pays the balance by the tenth day, the entry to record the payment should include a

Multiple Choice

• Debit to Discounts of $12

• Debit to Accounts Payable of $300

• None of the other alternatives are correct

• Credit to Cash of $600

• Debit to Purchases Returns and Allowances of $294