On April 5, Fair Coffee, Inc. purchased merchandise with a list price of $1,000 and credit terms 2/10, n/30. On April 6, Fair Coffee returns $200 of the merchandise. Assuming Fair Coffee uses a perpetual inventory system, the journal entry on April 6, to record the return, would be: DEBIT CREDITA)Accounts Payable 200 Cash 200 B)Accounts Payable 200 Purchase Returns and Allowances 200 C)Purchase Returns and Allowances 200 Accounts Payable 200 D)Accounts Payable 200 Merchandise Inventory 200
A. Option A.
B. Option B.
C. Option C.
D. Option D.
Answer: D
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