purchased $9,750 of uniper Company uses a perpetual inventory system and the gro

Question

purchased $9,750 of uniper Company uses a perpetual inventory system and the gross method of accounting for purchases. The company merchandise on August 7 with terms 1/10, n/30. On August 11, t returned $1,500 worth of merchandise. On August 16, it paid the full amount due. The correct journal entry to record the payment on August 16 is: Multiple Choice Debit Merchandise Inventory $8,250, credit Cash $8,250 Debit Cash $8,250; credit Accounts Payable $8,250 Debit Accounts Payable $8.250, credit Merchandise Inventory $82.50; credit Cash $8,16750 Debit Accounts Payable $9,750; credit Merchandise Inventory $97.50, credit Cash $9,652.50 Debit Accounts Payable $8,16750, credit Cash $8367.50

Explanation / Answer

Journal entry :

So answer is c) Debit account payable $8250; Credit merchandise inventory $82.50; Credit cash $8167.50

Date account and explanation debit credit Aug 16 Account payable (9750-1500) 8250     Cash (8250*99%) 8167.50      Merchandise inventory 82.50

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