24.

Reymeyer Inc. uses a perpetual inventory system. A purchase of inventory on account for $2,000 will be recorded with the following journal entry:

A)debit Merchandise Inventory, $2,000; credit Accounts Payable, $2,000 B)debit Supplies, $2,000; credit Cash, $2,000 C)debit Cost of Goods Sold, $2,000; credit Merchandise Inventory, $2,000 D)debit Purchases, $2,000; credit Accounts Payable, $2,000

25.

Jacobson Company purchased inventory for $5,000 from Hotard, Inc. After Jacobson agreed to retain merchandise with a cost of $500 that was defective, Hotard reduced the selling price for the damaged goods to $250. Hotard will record

A)a sales discount of $250 B)cost of goods sold of $4,750 C)a sales return of $500 D)a sales allowance of $250 Hope you can explain to me the correct answer! thanks