Juniper Company Uses a Perpetual Inventory System and the Gross

Multiple Choice

Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases.The company purchased $9,750 of merchandise on August 7 with terms 1/10,n/30.On August 11,it returned $1,500 worth of merchandise.On August 16,it paid the full amount due.The correct journal entry to record the payment on August 16 is:

A) Debit Merchandise Inventory $8,250; credit Cash $8,250.
B) Debit Cash $8,250; credit Accounts Payable $8,250.
C) Debit Accounts Payable $8,250; credit Merchandise Inventory $82.50; credit Cash $8,167.50.
D) Debit Accounts Payable $9,750; credit Merchandise Inventory $97.50; credit Cash $9,652.50.
E) Debit Accounts Payable $8,167.50; credit Cash $8,167.50.