Jello's Market purchased $1,000 of goods on account with terms of 2/10,n/30. They returned $200 of the goods due to defect the next day. If Jello pays for the purchase within the discount period and uses the perpetual inventory system, the required journal entry to record the payment would:Multiple choice question.debit Accounts Payable $800; credit Merchandise Inventory $16; and credit Cash $784debit Accounts Payable $800; credit Cash $780; and credit Merchandise Inventory $20debit Accounts Payable $1,000; credit Cash 980; and credit Purchase Discounts $20debit Accounts Payable $800 and credit Cash $800

A company purchased $3,200 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $900 worth of merchandise. On July 12, 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 12 is:Multiple ChoiceDebit Merchandise Inventory $2,300; credit Cash $2,300.Debit Cash $2,300; credit Accounts Payable $2,300.Debit Accounts Payable $2,300; credit Merchandise Inventory $46; credit Cash $2,254.Debit Accounts Payable $3,200; credit Cash $3,200.Debit Accounts Payable $2,300; credit Cash $2,300.

A supplier offers a company terms 3/10, n/30 for a $10,000 purchase on account on January 1. The company uses a perpetual inventory system to record transactions. If the company makes the payment on January 10, the entry to record the payment will include a:Multiple ChoiceDebit to Accounts Payable for $300Credit to Inventory for $300Debit to Accounts Payable for $9,700Credit to Cash for $10,000

Juice Drinks returned $25 of defective merchandise to its supplier. Demonstrate the required journal entry that Juice Drinks will record for the return, assuming the purchase was made on account and that Juice Store uses the periodic inventory system.Multiple choice question.Debit Accounts Payable $25 and credit Cash $25.Debit Purchases Returns and Allowances $25 and credit Accounts Payable $25.Debit Accounts Payable $25 and credit Merchandise Inventory $25.Debit Accounts Payable $25 and credit Purchases Returns and Allowances $25.

Jo's Market makes a credit sale for $1,000 with terms of 2/10,n/30. The cost of the merchandise is $400. The required journal entry to record the sale and cost of the sale is:Multiple choice question.debit Accounts Payable $1,000; and credit Sales $1,000debit Accounts Receivable $1,000; credit Sales $1,000; debit Cost of Goods Sold $400; and credit Merchandise Inventory $400debit Accounts Receivable $1,000 and credit Sales 1,000debit Accounts Receivable $600; credit Sales $600; debit Cost of Goods Sold $400; and credit Merchandise Inventory $400

On Dec. 7, Toys R Fun purchased $1,000 of merchandise with terms of 2/10,n/30. If payment is made on December 16, demonstrate the required journal entry for Toys R Fun to record the payment under the perpetual inventory system.Multiple choice question.Debit Merchandise Inventory $20; debit Cash $980; credit Accounts Payable $1,000.Debit Accounts Payable $1,000; credit Cash $980; credit Merchandise Inventory $20.Debit Accounts Payable $1,000; credit Cash $1,000; credit Purchase Discounts $20.Debit Accounts Payable $1,000; credit Cash $1,000.