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Fact Pattern C - Questions #10 through #12: On 2/1/YR 1, the Seller delivered goods to the Purchaser in the amount of $7,000 which are

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Fact Pattern C - Questions #10 through #12: On 2/1/YR 1, the Seller delivered goods to the Purchaser in the amount of $7,000 which are not to the Purchaser's specifications. At the time of the delivery of the goods, the Purchaser had not yet paid for the goods, and the Purchaser planned to pay for them in 3/1/YR 1 (.e., the following month) in accordance with the credit terms offered by the Seller. Identifying that the goods are not conforming the Purchaser, on 2/2/YR 1, returns to the Seller half of the goods delivered and asks for a $3,500 reduction in the amount owed to the Seller. When the goods are returned, the Seller returns the goods to its inventory. The costs of the returned goods are $1000. Question #10. Under the periodic method of accounting for inventories, consider the journal entry for the return transaction in Fact Pattern D, above, from the Purchaser's perspective as of 2/2/YR 1. The Purchaser will: a. Credit Account Receivable for $3500. b. Credit Account Payable for $3500. C. Credit Purchase Returns for $3500. d. Credit Inventory for $3500. e. Credit Sales Returns for $3500. Question #11. Under the periodic method of accounting for inventories, consider the journal entry for the return transaction in Fact Pattern D, above, from the Seller's perspective as of 2/2/YR 1. The Seller will: a. Debit Account Receivable for $3500. b. Debit Inventory for $1000. C. Debit Purchase Returns for $3500. d. Credit COGS for $3500. e. None of the above are correct. Question #12. Under the perpetual method of accounting for inventories, consider the journal entry for the return transaction in Fact Pattern D, above, from the Seller's perspective as of 2/2/YR 1. The Seller will: a. Debit Account Receivable for $3500. b. Debit Inventory for $1000, C. Debit Purchase Returns for $3500. d. Credit COGS for $3500. e. None of the above are correct

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