On September 12, J Company purchased merchandise in the amount of $5,800 from V Company on credit with terms of 2/10, n/30. J Company receives a $800 allowance on September 15 and pays the balance of the invoice on September 28.
If J company uses the periodic inventory method, the credit in the September 15 entry would be:
a. Purchase returns and allowances
b. Merchandise Inventory
c. Purchase discounts
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