A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the merchandise return on July 7 is:
A. Debit Accounts Payable $200; credit Merchandise Inventory $200.
B. Debit Merchandise Inventory $200; credit Sales Returns $200.
C. Debit Merchandise Inventory $200; credit Accounts Payable $200.
D. Debit Accounts Payable $1,800; credit Purchase Returns $200; credit Merchandise Inventory $1,600.
E. Debit Merchandise Inventory $1,600; credit Cash $1,600.
Answer: A
You might also like to view...
Which of the following does NOT create sales through presentations and probably never attempts to close a sale?
A. Account representative B. Sales engineer C. Order-taker D. Detail salesperson E. Industrial products salesperson
A ________ documents an organization's purpose—what it wants to accomplish in the larger environment
A) vision statement B) mission statement C) business portfolio D) value proposition E) product strategy
The PRSA ethics code ________
A) provides public relations practitioners a constructive way to frame ethical issues in their profession. B) is used by the federal government to prosecute ethics violators in the private sector. C) was first drafted by Edward Bernays. D) helps mass media organizations to develop their own editorial policies. E) is merely theoretical and used mostly to teach communication ethics to students.
If the sum of all task times is 50 and the cycle time is 10, then ______.
a. the number of workstations is 5 b. the number of workstations is 500 c. the balance efficiency is .88 d. the idle time is 3