S1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned On July 28, it paid the full amount due. Assuming the company uses a perpetual or merchandise. inventory on July 28 is: the payne 28 system, and records purchases using the gross method, the correct journal eny A) Debit Cash $1,600: credit Accounts Payable $1,600. B) Debit Accounts Payable $1.600; credit Merchandise Inventory 3325 cr C) Debit Accounts Payable $1,600; credit Cash $1,600. D) Debit Merchandise Inventory $1,600, credit Cash $1,600. edit Cash $1.568. E) Debit Accounts Payable $1,800; credit Cash $1,800. in the amount of $5,800 to Anders, with credit terms of ing uses the perpetual inventory system and the gross 22) On May 1, Shilling Company sold merchandise 2/10, n/30. The cost of the items sold is $4.000. Shill method. The journal entry or entries that Shilling will make on May 1 is: ccounts receivable B) ccounts receivable Sales 5,80 5,80 C) Accounts receivable 5,800 Sales 5,800 ost of s sold 4.00 Merchandise Inventory 4,000 D) Sales Accounts receivable Cost of goods sold 5,800 5,80 4,000 4,00 Merchandise Inventory E) Sales Accounts receivable 5,800 5,800 23) A debit to Sales Returns and Allowances and a credit to Accounts Receivable: A) Records the cost side of a sales return. B) Is recorded when a customer takes a discount. C) Reflects an increase in amount due from a customer O) Reflects a decrease in amount due to a supplier. ) Recognizes that a customer returned merchandise and/or received an allowance