A company purchased 1800 of merchandise on july 5

An organization bought $1,800 of merchandise on July 5 with phrases
2/10, n/30. On July 7, it returned $200 price of merchandise. On
July 28, it paid the total quantity due. Assuming the corporate makes use of a
perpetual stock system, and information purchases utilizing the gross
technique, the right journal entry to file the merchandise return
on July 7 is:

Debit Merchandise Stock $200; credit score Accounts Payable
$200.

Debit Merchandise Stock $200; credit score Gross sales Returns $200.

Debit Accounts Payable $1,800; credit score Buy Returns $200;
credit score Merchandise Stock $1,600.

Debit Merchandise Stock $1,600; credit score Money $1,600.

Debit Accounts Payable $200; credit score Merchandise Stock $2

Debit Merchandise Stock $200; credit score Accounts Payable
$200.

Debit Merchandise Stock $200; credit score Gross sales Returns $200.

Debit Accounts Payable $1,800; credit score Buy Returns $200;
credit score Merchandise Stock $1,600.

Debit Merchandise Stock $1,600; credit score Money $1,600.

Debit Accounts Payable $200; credit score Merchandise Stock $2

Also Read :   Draw a structural formula for the major organic product of the reaction shown below.

Reply is Choice E)
Debit Account Payable $200
Credit score Merchandise Stock $200
Accounts payable has been decreased and Stock is credited at
$200 ( Since Gross technique is adopted )

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