BUISENESS MANAGEMENT
MERCHANDISING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A company that uses the net method of recording purchases and a perpetual inventory system purchased $3, 600 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $800 worth of merchandise. On July 28, it paid the full amount due. The correct journal entry to record the payment on July 28 is:
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Debit Merchandise Inventory $2, 800; credit Cash $2, 800.
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Debit Cash $2, 800; credit Accounts Payable $2, 800.
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Debit Accounts Payable $2, 800; credit Merchandise Inventory $56; credit Cash $2, 744.
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Debit Accounts Payable $3, 600; credit Cash $3, 600.
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Debit Accounts Payable $2, 744; debit Discounts Lost $56; credit Cash $2, 800.
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Explanation:
There is 1 question to complete.