Chegg Study Textbook Solutions Expert Q&A Study Pack Practice solutions for your homework Search home / study business/accounting / accounting questions and answers a company purchased 1800 of merchandise on jy 5 with terms 7/10... Question: A company purchased $1,800 of merchandise on July 5 with ... A company purchased $1,800 of merchandise on July 5 with terms 2/10, 1/30. On July 7, it returned $200 worth of merchandise On July 28, paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the merchandise return on July 7 is . Debit Merchandise Inventory $200, credit Accounts Payable $200 Debt Merchandise Inventory $200, credit Sales Returns $200 . Debit Accounts Payable $1,800, credit Purchase Retums $200, credit Merchandise Inventory $1,600 Debit Merchandise Inventory $1,600 Credit Cash $1,600 Debit Accounts Payable $200, credit Merchandise Inventory $2 Expert Answer Welcome back. We've missed you! E R S F G . K K V B N M