A company purchased $2,700 of merchandise on July 5 with terms 2/10, n/30. On July...
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Accounting
A company purchased $2,700 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $650 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: Multiple Choice Debit Merchandise Inventory $2,050; credit Cash $2,050. Debit Cash $2,050; credit Accounts Payable $2,050. Debit Accounts Payable $2,700; credit Cash $2,700. Debit Accounts Payable $2,050; credit Cash $2,050. Debit Accounts Payable $2,050; credit Merchandise Inventory $41; credit Cash $2,009.
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