A company using the perpetual inventory system purchased inventory worth $500,00

Question

A company using the perpetual inventory system purchased inventory worth $500,000 on account with credit terms of 2/15, ni45. Defective inventory of $50,000 was returmed 2 days later, and the accounts were approprialely adjusted if the company paid the invoice 20 days later, the journal entry to reoord the payment would be O A $500,000 debit to Accounts Payable and $500,000 credit to Cash ??. $409,000 deb" to Aoort. Payable, S9.000 credt to Merchandse inventory, and $450,000 ored' to Cash ??. tsoo,000 debt to Aoourts Payatie, S401,000 crest to CanA and $0.000 oode to Merohanise iventury O D. $460,000 debit to Accounts Payable and S450,000 credt to Cash

Explanation / Answer

correct option is "D"

since the payment is made after discount period (15 days) ,discount is not available.

Amount due after return of inventory = 500000-50000= 450000

Debit to accounts payable   debit 450000 ,cash credit 450000

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