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Home Q & A Board Other Fields Homework Help Business Accounting
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gOOvER gOOvER
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7 years ago
Avery Supplies uses a periodic inventory system. Avery purchased $10,000 of inventory on account. The terms were 3/10, n/30. The purchase was made on February 1. On February 2, Avery returned $400 of damaged goods to the supplier and was granted an allowance.  How should Avery properly record the allowance?
A)
Accounts Payable   400    
    Purchase Returns and Allowances      400

B)
Accounts Payable   9,600    
    Purchase Discounts   400    
    Purchases      10,000

C)
Accounts Payable   10,000    
    Cash      9,600
    Purchase Returns and Allowances      400

D)
Accounts Payable   400    
    Cash      400
Textbook 
Accounting, Volume 1, Canadian Edition

Accounting, Volume 1, Canadian Edition


Edition: 9th
Authors:
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raovatallpyraovatallpy
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7 years ago
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