Glover Co Returned Defective Goods Costing $5000 to Mal Company on on April

Glover Co. returned defective goods costing $5000 to Mal Company on April 19 for credit. The goods were purchased April 10 on credit terms 3/10 n/30. The entry by Glover Co. on April 19 in receiving full credit is: a.
$\begin{array}{ll}\text { Accounts Payable } &5,000\\\text { Inventory }&&5,000\end{array}$

b.
$\begin{array}{ll}\text { Accounts Payable }&5,000 \\\text { Inventory }&150\\\text { Cash}&&5,150\end{array}$

c.
$\begin{array}{ll} \text { Iccounts Payable } & 5,000 \\\text { Purchase Discounts }&&120 \\\text { Inventory }&&4,850\end{array}$

d.
$\begin{array}{lrr} \text { Accounts Payable} &5,000\\ \text { Inventory } &&120\\ \text { Cash} &&4,850\end{array}$

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free