ABC Co. uses a net method for discounts of inventory. ABC Co. has the following transactions in
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Question:
ABC Co. uses a net method for discounts of inventory. ABC Co. has the following transactions in May 2021: May 1, Purchased inventory on credit terms 1/10 n,30 for 10000 May 9 Return 50% of inventory purchased on May 1, it was defective. Which one is the correct journal entry for May 9?
a. Debit A/P 5000 credit inventory 5000
b. Debit Cash 4500, Credit A/P 4500
c. Debit A/P 4500, Credit inventory 4500
d. Debit A/P 5000, Credit Cash 5000
Related Book For
Accounting For Managers Interpreting Accounting Information for Decision Making
ISBN: 978-1119979678
4th edition
Authors: Paul M. Collier
Posted Date: