Ask Question
13 April, 01:08

A company purchased $3,200 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $900 worth of merchandise. On July 12, 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 July 12 is:

+4
Answers (1)
  1. 13 April, 04:07
    0
    The correct journal entry is as follows

    Accounts payable A/c Dr $2,300

    To Cash A/c $2,254

    To Merchandise Inventory A/c $46

    (Being due amount is paid and the remaining balance is credited to the cash account)

    It is computed below:

    For account payable

    = $3,200 - $900

    = $2,300

    For Merchandise inventory

    = ($3,200 - $900) * 2%

    = $46
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A company purchased $3,200 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $900 worth of merchandise. On July 12, it ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers