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Mathematics, 14.04.2020 18:33 2sally2
A company purchased $10,000 of merchandise on January 5 with terms 2/10, n/30. On January 7, it returned $1,200 worth of merchandise. On January 28, 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 January 28 is:
A. Debit Accounts Payable $10,000; credit Merchandise Inventory $200; credit Cash $9,800.
B. Debit Merchandise Inventory $8,800; credit Cash $8,800.
C. Debit Accounts Payable $8,800; credit Merchandise Inventory, $176; credit Cash $8,624.
D. Debit Cash $1,600; credit Accounts Payable $1,600.
E. Debit Accounts Payable $8,624; credit Cash $8,624.
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A company purchased $10,000 of merchandise on January 5 with terms 2/10, n/30. On January 7, it retu...
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