A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. The correct journal entry to record the purchase on July 5 is:
a) Debit Merchandise Inventory $1,600; credit Cash $1,600.
b) Debit Merchandise Inventory $1,800; credit Accounts Payable $1,800.
c) Debit Merchandise Inventory $1,800; credit Sales Returns $200; credit Cash $1,600.
d) Debit Accounts Payable $1,800; credit Merchandise Inventory $1,800.
e) Debit Accounts Payable $1,800; credit Purchase Returns $200; credit Merchandise Inventory $1,600.
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. The correct journal entry to record the merchandise return on July 7 is:
a) Debit Merchandise Inventory $1,600; credit Cash $1,600.
b) Debit Merchandise Inventory $200; credit Accounts Payable $200.
c) Debit Merchandise Inventory $200; credit Sales Returns $200.
d) Debit Accounts Payable $200; credit Merchandise Inventory $200.
e) Debit Accounts Payable $1,800; credit Purchase Returns $200; credit Merchandise Inventory $1,600.