question 22

ordstrom buys merchandise on credit from Gucci on August 5 , for $160,000, terms 3/10, 30 n August 21, Nordstrom received a price reduction from Gucci of $10,000 because some of the merchandise urchased on August 5 was damaged. ordstrom pays the invoice on August 15. oth companies use the perpetual inventory system and the gross method. The journal entry that Nordstrom akes on August 5 is: Multiple Choice Debit Merchandise Inventory $160,000; credit Cash $160,000. Debit Accounts Payable $150,000; credit: Merchandise Inventory $4,500; credit Cash $145,500 Debit Merchandise Inventory $160.000; credit Accounts Payable $160,000 Debit Merchandise inventory \$155,200; credit Accounts Payable \$155,200. Debit Merchandise Inventory $150,000; credit Accounts Payable $150,000