Polk Company uses a perpetual inventory system and had the following transactions during November: November 6-Purchased $8,700 of inventory on account,terms 2/10,n/30.
November 8-Returned $1,200 of defective units and received full credit.
November 15-Paid the amount due.
What journal entry will be recorded by Polk Company on November 15?
A)Debit Accounts Payable and credit Cash for $7,350
B)Debit Accounts Payable for $7,500,credit Purchase Discount for $150,and credit Cash for $7,350
C)Debit Accounts Payable for $7,500,credit Inventory for $150,and credit Cash for $7,350
D)Debit Accounts Payable for $7,350,credit Inventory for $150,and credit Cash for $7,200

Question

Quizplus · Accepted Answer

Debit Accounts Payable for $7,500,credit Inventory for $150 (or $7,500 × 0.02),and credit Cash for $7,350 (or $7,500 − $150).

Polk Company Uses a Perpetual Inventory System and Had the Following