A company that uses the perpetual inventory method purchases Merchandise inventory of $1,000 on account with...

 

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A company that uses the perpetual inventory method purchases Merchandise inventory of $1,000 on account with terms of 2/10 net/30. Defective Merchandise inventory of $200 is returned 2 days later. Which of the following entries would be made to record payment for the Merchandise inventory if the payment is made within 10 days? The accounting entry would be an $800 debit to Accounts payable and an $800 credit to Cash. The accounting entry would be a $784 debit to Accounts payable, a $16 debit to Merchandise inventory and an $800 credit to Cash. The accounting entry would be a $16 debit to Inventory, an $800 debit to Accounts payable and an $816 credit to Cash. The accounting entry would be an $800 debit to Accounts payable, a $16 credit to Merchandise inventory and a $784 credit to Cash. A company that uses the perpetual inventory method purchases Merchandise inventory of $1,000 on account with terms of 2/10 net/30. Defective Merchandise inventory of $200 is returned 2 days later. Which of the following entries would be made to record payment for the Merchandise inventory if the payment is made within 10 days? The accounting entry would be an $800 debit to Accounts payable and an $800 credit to Cash. The accounting entry would be a $784 debit to Accounts payable, a $16 debit to Merchandise inventory and an $800 credit to Cash. The accounting entry would be a $16 debit to Inventory, an $800 debit to Accounts payable and an $816 credit to Cash. The accounting entry would be an $800 debit to Accounts payable, a $16 credit to Merchandise inventory and a $784 credit to Cash.

Answer rating: 100% (QA)

Answer d The accounting entry would be an 800 debit to accounts payable a 16 credit to Me... View the full answer