Item6

10points

eBook

Item 6

A company that uses the net method of recording purchases and a perpetual inventory system purchased $3,300 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned $900 worth of merchandise. On July 28, it paid the full amount due. The correct journal entry to record the payment on July 28 is:

Multiple Choice

• Debit Merchandise Inventory $2,400; credit Cash $2,400.

• Debit Accounts Payable $3,300; credit Cash $3,300.

• Debit Cash $2,400; credit Accounts Payable $2,400.

• Debit Accounts Payable $2,400; credit Merchandise Inventory $72; credit Cash $2,328.

• Debit Accounts Payable $2,328; debit Discounts Lost $72; credit Cash $2,400.