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On Oct. 1, Jerry's Lighting purchased merchandise with a list price of $5,000 with credit terms of 1/10, n/30. On Oct. 3, Jerry's returns $500
On Oct. 1, Jerry's Lighting purchased merchandise with a list price of $5,000 with credit terms of 1/10, n/30. On Oct. 3, Jerry's returns $500 of the merchandise. Assuming aperpetualinventory system is used and Jerry's pays the remaining amount owed on the purchasewithinthe discount period, Jerry's journal entry torecord the payment, would include
a credit toPurchase Discountsfor $45.a debit toMerchandise Inventoryfor $45.a debit toAccounts Payablefor $4,500.a debit toAccounts Receivablefor $4,500.
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