Answer :-
Journal Entry at the time of purchase
Debit Merchandise Inventory $1,800
Accounts Payable $1,800
Gross method of booking purchase is just opposite to the Net Method. Gross method takes the assumption that the organization will not take any discount benefit and will make the payment only after the discount dates.
Incorrect Question 5 0/1 pts A company purchased $1,800 of merchandise on July 5 with terms...
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, The correct journal entry to record the purchase on July 5 is: A) Debit Merchandise Inventory $1,600; credit Cash $1,600 B) Debit Merchandise Inventory $1,800; Credit Sales Return $200; Credit Cash $1,600 C) Debit...
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 28 is: Debit Accounts Payable $1,800; credit Cash $1,800. Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568. Debit Cash $1,600; credit Accounts Payable $1,600. Debit...
A company purchased $1,900 of merchandise on July 5 with terms 210, 1/30. On July 7, it returned $200 worth of merchandise. On July 29, it pa u the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the merchandise rctum on July 7 is: Multiple Choice o Debit Accounts Payale $1.800; creclit Purchase Returns $200: credit Merchandise inventory $1,600. o Debit Accounts Payab e...
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, The correct journal entry to record the purchase on July 5 is:
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A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 8, it paid the invoice. The amount of the cash paid on July 8 equals: A) $200 B) $1,564. C) $1,568 D) $1,600 E) $1,800. Select one: O A. Choice A O B. Choice B O C. Choice C O D. Choice D O E. Choice E A company purchased $1,800 of merchandise on July 5...
JPLS A company that uses the net method of recording purchases and a perpetual inventory system purchased $1,800 of merchandise on July 5 with terms 2/10,n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. The correct journal entry to record the payment on July 28 is: O <p>Debit Merchandise Inventory $1,600; credit Cash $1,600.</p> O <p>Debit Cash $1,600; credit Accounts Payable $1,600.</p> O <p>Debit Accounts Payable $1,600; credit Merchandise Inventory...
A company purchased $2.600 of merchandise on My 5 with terms on returned $285 worth of merchandise on podrem ote the amount of the cash padon My ques M e Choice ο ο ο ο ο A company purchased $2.000 of merchandise on July 5 with terms 20./30. Only it returned $300 worth of merchandise. On Ju 12. paid the full amount due Assuming the companyies a perpetual inventory system and records purchases using the gross method, the correct journal...