A company purchased $ of merchandise on July with terms On July it returned $ worth of merchandise. On July 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 is:
Multiple Choice
Debit Accounts Payable $; credit Merchandise Inventory $; credit Cash $
Debit Merchandise Inventory $; credit Cash $
Debit Accounts Payable $ credit Cash $
Debit Cash $; credit Accounts Payable $
Debit Accounts Payable $ credit Cash $
