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 13, to record the payment of the amount owed, would be: DEBIT CREDIT?A)Accounts Payable 1,000 ? Cash 1,000? ?B)Accounts Reveivable 1,000 ? Sales Discounts 16? Cash 984? ?C)Accounts Payable 800 ? Merchandise Inventory 16? Cash 784? ?D)Accounts Payable 800 ? Purchase Discounts 16? Cash 784???
A. Option A.
B. Option B.
C. Option C.
D. Option D.
Answer: C
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What will be an ideal response?
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