A company that uses the net method of recording purchases and a perpetual inventory system purchases $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 payment on july 28 is:

Dr. Accounts Payable(1,800 - 200)$1,600

Cr. Cash$1,600

Explanation:

Since the company uses the net method of recording purchases and a perpetual inventory system and purchases $1,800 of merchandise on july 5 with terms 2/10, n/30.

After the returns on July 7, of $200 worth of merchandise.

The correct journal entry to record the payment on July 28 is:

1. The Journal entries will be for the purchases amount less the returns of inventory

2. The discount of 2% has elapsed since the company did not pay within 10 days.

JOURNAL ENTRY

Dr. Accounts Payable(1,800 - 200)$1,600

Cr. Cash$1,600

Being settlement of purchases of $1800 on account less purchases returns of $200

you get one warning and if you do something to violate the guidelines of after that you get kicked off.

mark as

client registration system, resource management system, clinical management system, patient information database, common use-system interface

explanation: