Multiple Choice
Juniper Company, Inc. uses the gross method of recording purchases and a perpetual inventory system. 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 purchase on August 7 is:
A) Debit Merchandise Inventory $9,750; credit Cash $9,750.
B) Debit Purchases $9,652.50; credit Accounts Payable $9,652.50.
C) Debit Merchandise Inventory $9,750; credit Sales Returns $1,500; credit Cash $8,250.
D) Debit Merchandise Inventory $9,750; credit Accounts Payable $9,750.
E) Debit Accounts Payable $8,250; debit Purchase Returns $1,500; credit Merchandise Inventory $9,750.
Correct Answer:
Verified
Correct Answer:
Verified
Q19: Sellers always offer a discount to buyers
Q33: A common rule of thumb is that
Q45: Akron Company, which uses a perpetual inventory
Q47: Identify and explain the key components of
Q49: Cost of goods sold is:<br>A)Another term for
Q51: Whitehorn Ski Company uses the gross method
Q52: If goods are shipped FOB destination, the
Q53: The _ inventory system continually updates accounting
Q82: Cost of goods sold is also called
Q250: Successful use of a just-in-time inventory system