Question:Table 1. On February 1, Company E purchased $9,500.00 worth of inventory on terms: 2/10, n/30, FOB Shipping Point on account from Company F. The Freight Charge is $200.00. On February 2, Company E returned $500 worth of merchandise purchased to Company F.

If the Company E uses periodic inventory system, the entry to record the purchase of inventory on Company E's books on Feb. 1 will include:

Debit to Accounts Payable for $9,500

Credit to Cash for $9,500

Debit to Purchases for $9,500

Credit to Inventory for $9,500

Debit to Inventory for $9,500

Table 1. On February 1, Company E purchased $9,500.00 worth of inventory on terms: 2/10, n/30, FOB Shipping Point on account from Company F. The Freight Charge is $200.00. On February 2, Company E returned $500 worth of merchandise purchased to Company F.

If Company E uses periodic inventory system. The entry to record the return of inventory on Company E's books on Feb. 2 will include:

Debit to Inventory for $500.00

Debit to Accounts Payable for $500.00

Debit to Purchases for $500.00

Credit to Cash for $500.00

Credit to Accounts Payable for $500.00

Table 1. On February 1, Company E purchased $9,500.00 worth of inventory on terms: 2/10, n/30, FOB Destination on account from Company F. The Freight Charge is $200.00. On February 2, Company E returned $500 worth of merchandise purchased to Company F. Company E uses perpetual inventory system.

The entry to record the purchase of inventory from Company F will include:

Debit to Cash for $9,500.00

Credit to Inventory for $9,500.00

Credit to Accounts Payable for $9,700.00

Debit to Inventory for $9,500.00

Credit to Cash for $9,700.00

Table 1. On February 1, Company E purchased $9,500.00 worth of inventory on terms: 2/10, n/30, FOB Shipping Point on account from Company F. The Freight Charge is $200.00. On February 2, Company E returned $500 worth of merchandise purchased to Company F. The company uses perpetual inventory system.

The entry to record the return of inventory on Company E's books on Feb. 2 will include:

Debit to Cash for $500.00

Credit to Accounts Payable for $500.00

Debit to Inventory for $500.00

Credit to Accounts Receivable for $500.00

Debit to Accounts Payable for $500.00

Table 2. Company H purchased office supplies on account from Office Depot on March 1, current year for $7,200.00. The terms are 2/10, n/30, FOB Destination. The Freight Charges are $300.00 paid in advance by Office Depot. On March 3, Company H returned $200.00 worth of office supplies to Office Depot.

Refer to Table 2, the entry on Company H's books for the purchase of office supplies will include:

Debit to Office Supplies for $7,200.00

Credit to Accounts Payable for $7,400.00

Credit to Office Supplies for $7,200.00

Credit to Cash for $7,400.00

Debit to Accounts Payable for $7,200.00

Table 2. Company H purchased office supplies for use on account from Office Depot on March 1, current year for $7,200.00. The terms are 2/10, n/30, FOB Destination. The freight charges are $300.00 paid in advance by Office Depot. On March 3, Company H returned $200.00 worth of office supplies to Office Depot.

Refer to Table 2, the entry on Company H's books for the return of the office supplies purchased on March 3 will include:

Debit to Inventory for $200.00

Credit to Cash for $200.00

Debit to Accounts Payable for $200.00

Credit to Accounts Payable for $200.00

Debit to Cash for $200.00

Table 3: Company K purchased inventory items on account from Company L on April 1 for $2,500.00 on terms: 1/10, n/30, FOB Destination. The Freight Charges cost $300.00. On April 4, Company K returned $500.00 worth of defective merchandise. Company K uses perpetual inventory system.

Refer to Table 3, the entry on April 1 for the purchase of merchandise by Company K will include:

Debit to Cash for $2,500.00

Credit to Accounts Payable for $2,500.00

Debit to Inventory for $2,800.00

Credit to Cash for $2,800.00

Debit to Accounts Payable for $2,500.00

Table 3: Company K purchased inventory items on account from Company L on April 1 for $2,500.00 on terms: 1/10, n/30, FOB Destination. The Freight Charges cost $300.00. On April 4, Company K returned $500.00 worth of defective merchandise. Company K uses perpetual inventory system.

Refer to Table 3, the entry to record the return of the inventory items on April 4 will include:

Debit to Cash for $500.00

Credit to Accounts Payable for $500.00

Debit to Accounts Payable for $500.00

Credit to Cash for $500.00

Debit to Purchases for $500.00