A company purchased $2,500 of merchandise on July 5 with terms 2/10, n/30. On Ju

Question

A company purchased $2,500 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $550 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 corre journal entry to record the payment on July 12 is: Multiple Choice Debit Merchandise Inventory $1,950, credit Cash $1,950 O Deblt Cash $1950 credit Accounts Paoyablo $1950. Debit Accounts Payable $1,950, credit Merchandise Inventory $39, credit Cash $1,911 Debit Accounts Payable $2.500, credit Cash $2.,500 Debit Accounts Payable $1,950; credit Cash $1,950

Explanation / Answer

Debit Accounts payable by 1950 credit merchandise inventory by 39 credit cash by 1911

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