Question
Wexim Toys purchased merchandise from a supplier on credit, terms 2/10, n/30 for $9,500. Three days later the company returned $1,200 of the merchandise. When
Wexim Toys purchased merchandise from a supplier on credit, terms 2/10, n/30 for $9,500. Three days later the company returned $1,200 of the merchandise. When recording the return transaction, the company would record:
A. $1,200 in the Accounts Payable Cr. column and $1,200 in the Inventory Dr. column of the purchases journal.
B. Debit Accounts Payable $1,200 and credit Inventory $1,200 in the general journal.
C. $1,200 in the Cash Cr. column and $1,200 in the Inventory Cr. column in the cash disbursements journal.
D. Debit Cash $1,200 and credit Inventory $1,200 in the general journal.
E. $1,200 in the Accounts Payable Dr. column and $1,200 in the Cash Cr. column of the cash disbursements journal.
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