Knowledge Check $01$

A buyer uses a perpetual inventory system, and on December $7,$ it contacts its supplier to report that some of the merchandise purchased on December $5$ was defective. The seller offered to reduce the merchandise price by $$400.$ The buyer agreed to keep the defective merchandise under those terms.

Complete the buyer's necessary journal entry by selecting the account names from the drop$-$down menus and entering the dollar amounts in the debit or credit columns.

Journal entry worksheet

$1$

A buyer uses a perpetual inventory system, and on December $7,$ it contacts its supplier to report that some of the merchandise purchased on December $5$ was defective. The seller offered to reduce the merchandise price by $$400.$ The buyer agreed to keep the defective merchandise under those terms.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[\backslash$table$[[$December$],[07]],,,],[,,,],[,,,],[,\frac{?}{\text{b}\text{a}\text{r}}(F),,],[,,,],[,,,,]]$