On May? 1, Santelle Company purchased $700 of inventory on account with credit t

Answer: Journal entry B. debit Accounts Payable for $160 and credit Purchase Returns and Allowances for $160.

ID: 2403770 • Letter: O

Question

On May? 1, Santelle Company purchased $700

of inventory on account with credit terms of 33?/10,

net 30. Santelle uses the perpetual inventory system. On May? 2, the seller gave Santelle a $160

allowance due to a product defect. What journal entry did Santelle Company prepare on May? 2?

A.debit Accounts Payable for $160 and credit Purchase Discounts for $160.

B. debit Accounts Payable for $160 and credit Purchase Returns and Allowances for $160.

C.debit Accounts Payable for $160 and credit Inventory for $160.

D.debit Cash for $160 and credit Accounts Payable for

$160.

Answer: Journal entry

B. debit Accounts Payable for $160 and credit Purchase Returns and Allowances for $160.

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