BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -What is the journal entry for purchase of merchandise on account? The journal entry for purchase of merchandise on account is the same as the journal entry for purchase of merchandise for cash, except that the accounts payable account is credited instead of the cash account.

Detailed explanation-2: -Answer and Explanation: Using a perpetual inventory system, the buyer’s journal entry to record the return of merchandise purchased on account includes a d) credit to inventory. The purchase of the inventory under the perpetual inventory system means that inventory was debited and accounts payable was credited.

Detailed explanation-3: -The 1%/10 net 30 calculation is a way of providing cash discounts on purchases. It means that if the bill is paid within 10 days, there is a 1% discount. Otherwise, the total amount is due within 30 days.

Detailed explanation-4: -The correct answer is B. debit accounts payable and credit inventory. If the company had returned merchandise to the supplier, its inventory and accounts payable would decrease because of the returned goods. The entry would be a debit to accounts payable and a credit to Inventory.