Multiple Choice
A company using the perpetual inventory system purchased inventory worth $500,000 on account with terms of credit being 3/15, n/45. Defective inventory of $50,000 was returned 2 days later and the accounts were appropriately adjusted. If the company paid the invoice 25 days later, the journal entry to record the payment would be:
A) $500,000 debit to Accounts Payable and $500,000 credit to Cash.
B) $450,000 debit to Accounts Payable, $450,000 credit to Cash.
C) $500,000 debit to Accounts Payable ,$486,500 credit to Cash and $13,500 credit to Inventory.
D) $486,500 debit to Accounts Payable, $13,500 credit to Inventory and $450,000 credit to Cash.
Correct Answer:
Verified
Correct Answer:
Verified
Q59: Net sales revenue is equal to sales
Q114: Cost of goods sold appears on a
Q115: Which of the following is true of
Q116: The general ledger shows a balance of
Q117: The net income calculated using both the
Q120: On November 1, 2015, Wrenns Martch sold
Q122: A company that uses the perpetual inventory
Q124: Michelin Jewelers uses the perpetual inventory system.
Q150: Gross profit is calculated as _.<br>A) sales
Q181: Operating income is gross profit minus operating