A company that uses a perpetual inventory system purchased inventory on account and later returned goods worth $700 to the vendor. Which of the following would be the correct journal entry to record these returns? A. Accounts Payable 700 Merchandise Inventory 700 B. Merchandise Inventory 700 Accounts Payable 700 C. Purchase Returns 700 Accounts Payable 700 D. Accounts Payable 700 Purchase Returns 700

A company that uses a perpetual inventory system purchased inventory on account and later returned goods worth $700 to the vendor. Which of the following would be the correct journal entry to record these returns? A. Accounts Payable 700 Merchandise Inventory 700 B. Merchandise Inventory 700 Accounts Payable 700 C. Purchase Returns 700 Accounts Payable 700 D. Accounts Payable 700 Purchase Returns 700

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sales Transactions Journalize the following merchandise transactions, using the net method under a perpetual inventory system. a. Sold merchandise on account, $21,950 with terms 2/10, r/30. The cost of the goods sold was $13,170. If an amount box does not require an entry, leave it blank. b. Receved payment less the discount. If an amount bax does not require an entry, leave it blank. C. Refunded $510 to customer for defective merchandise that was not returned. If an amount box does not require an entry, leave it blank.
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A company that uses the perpetual inventory system purchased inventory for $1,130,000 on account with terms of 5/7, n/20. Which of the following correctly records the payment made 15 days after the date of invoice? A. Accounts Payable 1,130,000 Merchandise Inventory 1,130,000 B. Accounts Payable 1,130,000 Merchandise Inventory 56,500 Cash 1,073,500 C. Accounts Payable 1,130,000 Cash 1,130,000 D. Cash 1,130,000 Accounts Payable 1,130,000
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Jade Company uses the perpetual inventory system. It bought merchandise from Lilac Company. After two months, Jade Company returned merchandise worth $400 to Lilac Company. Which of the following journal entries records the return of merchandise by Jade? a. A debit to Cost for Goods Sold for $400 and a credit to Merchandise Inventory for $400 b. A debit to Accounts Payable, Lilac Company for $400 and a credit to Merchandise Inventory for $400 c. A debit to Accounts Payable, Lilac Company for $400 and a credit to Cost for Goods Sold for $400 d. A debit to Accounts Payable, Lilac Company for $400 and a credit to Purchases Returns and Allowances for $400
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Journalze for the following related transactions of Lilly Heating & Air Company using the net method under a perpetual inventory system. Purchased 55,100 of merchandise from Schell account, terms 1/10, n/30 paid the amount owed on the invoice discovered that merchandise with an invoice amount of 7,200 purchased in (a) was defective and returned items, receiving credit. Purchased $6200 of merchandise from Schell Co. on account, terms n/30. Received a refund from Schell Co. for return in (C) less the purchase in (D)