Periodic Inventory - Purchasing Summary Video Lessons

Concept

# Problem: J 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 28, it paid the full amount due. The correct journal entry to record the merchandise return on July 7 is: a. Debit Merchandise Inventory $200; credit Sales Returns$200. b. Debit Accounts Payable $200; credit Merchandise Inventory$200. c. Debit Merchandise Inventory $200; credit Sales$200. d. Debit Accounts Payable $1,800; credit Purchase Returns$200; credit Merchandise Inventory $1,600. ###### FREE Expert Solution ###### Problem Details J 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 28, it paid the full amount due. The correct journal entry to record the merchandise return on July 7 is: a. Debit Merchandise Inventory$200; credit Sales Returns $200. b. Debit Accounts Payable$200; credit Merchandise Inventory $200. c. Debit Merchandise Inventory$200; credit Sales $200. d. Debit Accounts Payable$1,800; credit Purchase Returns $200; credit Merchandise Inventory$1,600.

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