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Scout Company purchases goods for resale from Shakes, Inc. The amount of the purchase is $10,500 with terms of 3/10, n/30. Scout later returns $500
Scout Company purchases goods for resale from Shakes, Inc. The amount of the purchase is $10,500 with terms of 3/10, n/30. Scout later returns $500 of the goods. Under the perpetual inventory system, the journal entry to record the return is: O debit Accounts Payable - Shakes, Inc.; credit Inventory. debit Inventory; credit Accounts Payable - Shakes, Inc. O debit Purchase Returns and Allowances; credit Accounts Payable - Shakes, Inc. O debit Accounts Payable - Shakes, Inc.; credit Purchase Returns and Allowances
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