Solution-What the correct journal entry to record the

What the correct journal entry to record the payment on july

Reference no: EM132730652

Problem 1: A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 12, it 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 payment on July 12 is:

Debit Accounts Payable $1,600; credit Cash $1,600.

Debit Merchandise Inventory $1,600; credit Cash $1,600.

Debit Accounts Payable $1,800; credit Cash $1,800.

Debit Cash $1,600; credit Accounts Payable $1,600.

Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568.

Reference no: EM132730652

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What the correct journal entry to record the payment on july

Reference no: EM132730652

Reference no: EM132730652

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