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Checker Co. buys $500 of merchandise from a supplier subject to terms 2/10 n/30. Checker pays within the discount period and subsequently discovers the merchandise

Checker Co. buys $500 of merchandise from a supplier subject to terms 2/10 n/30. Checker pays within the discount period and subsequently discovers the merchandise is all defective. It is all returned for full credit.

The credit will not necessitate a journal entry as it will just be offset against the next purchase

The credit will be for $500

The credit will be to the Purchases account in Checker's general ledger

None of the above statements are correct

The credit will be for some other amount

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