Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On Dec. 20, X-Mart returned $100 of defective merchandise to its supplier. Demonstrate the required journal entry that X-Mart will record for the return, assuming
On Dec. 20, X-Mart returned $100 of defective merchandise to its supplier. Demonstrate the required journal entry that X-Mart will record for the return, assuming the purchase was made on account and that X-Mart uses the periodic inventory system.
Multiple choice question.
Debit Accounts Payable $100 and credit Purchase Returns $100.
Debit Purchases Returns and Allowances $100 and credit Accounts Payable $100.
Debit Accounts Payable $100 and credit Cash $100.
Debit Accounts Payable $100 and credit Merchandise Inventory $100.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started