Question

On May 4, Roscoe Grocery received merchandise costing $3,500 with freight charges of $200 paid by the supplier and added to the invoice, terms 2/10, 1/30. Some goods were returned, and, on May 11, the supplier issued a credit memo in the amount of $400. Roscoe paid the amount due on May 14 and recorded the transaction with a debit to: Click the answer you think is right. accounts payable cash purchases discounts purchases returns and allowances

Answer 1

Journal Entries
Date	Accounts	Debit ($)	Credit ($)
May-04	Purchase	3500
	Freight	200
	Accounts Payable		3700
May-11	Accounts Payable	400
	Purchase Return		400
May-14	Accounts Payable	3300
	Cash		3238	=3700-400-62
	Discount		62	=(3500-400)*2%

Thus, (a) Accounts Payable is correct.

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