On June 1, Thompson Company purchased inventary on account with a cost of $4000. The credit terms were 4/10, net g June 2. Thompson retumed 40 percent of the inventory. Thompson uses the perpetual inventory system. On June 8, Tho paid for the inventory. What journal entry did Thompson Company prepare on June 87

debit Accounts Payable for $2400, credit inventory for $96 and credit Cash for $2304

debit Purchase Discount for $96, debit Cash for $2304 and credit Accounts Payable for $2400

O debit Accounts Payable for $1600 and credit Cash for $1600

O debit Accounts Payable for $2400 credit Purchase Discount for $96 and credit Cash for $2304

Which of the following statements about sales retums and allowances is false?

O Sales Returns and Allowances are accounted for as expenses, which decrease net income

O Companies estimate sales returns and create an allowance

O Actual sales returns reduce the allowance account.

O Creating an allowance account for sales returns allows companies to follow the expense recigition principle

On January 2, 2023, Murray Corporation acquired equipment for $722,000. The estimated life of the equipment is 5 ye 19,000 hours. The estimated residual value is $17,000. If Murray Corporation uses the units of production method of depreciation, what is the book value on December 31, 2024, assuming that the equipment was used 4000 hours in 20

7700 hours in 20247

(Round intermediary calculations to the nearest cent and your final answer to the nearest dollar.)

O $148,440.00

O 6287,813

O $285,747.00

O $434,187