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H3Ko H3Ko
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Posts: 4891
3 years ago
A company using the perpetual inventory system purchased inventory worth $550,000 on account with credit terms of 2/15, n/45. Defective inventory of $70,000 was returned 3 days later, and the accounts were appropriately adjusted. If the company paid the invoice 25 days later, the journal entry to record the payment would be ________.
A) $550,000 debit to Accounts Payable, $540,400 credit to Cash, and $9,600 credit to Merchandise Inventory
B) $550,000 debit to Accounts Payable and $550,000 credit to Cash
C) $480,000 debit to Accounts Payable and $480,000 credit to Cash
D) $540,400 debit to Accounts Payable, $9,600 credit to Merchandise Inventory, and $480,000 credit to Cash
Textbook 

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
Authors:
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Mrgo-breedMrgo-breed
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3 years ago
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3 years ago
I posted this question a while back then forgot to check the forum lol Thanks for answering, you were right
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3 years ago
Feeling good that I helped someone
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A week ago
thanks
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