On August 1, Nevling Brothers bought goods with a list price of $14,400, terms 2/10, n/30. The firm records purchases at invoice price, using the periodic inventory system. On August 5, Nevling Brothers returned goods with a list price of $1,800 for credit.
If Nevling Brothers paid the supplier the amount due on August 9, the appropriate entry would be:
A) Accounts Payable $\quad $ 14,400
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Purchases Discounts$\quad $ 288
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash $\quad $ 14,112
B) Accounts Payable$\quad $ 12,348
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash $\quad $ 12,348
C) Accounts Payable $\quad $ 12,600
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Purchases Discounts $\quad $ 252
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash $\quad $ 12,348
D) Accounts Payable $\quad $ 12,600
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash $\quad $ 12,600

Question

On August 1, Nevling Brothers bought goods with a list price of $14,400, terms 2/10, n/30. The firm records purchases at invoice price, using the periodic inventory system. On August 5, Nevling Brothers returned goods with a list price of $1,800 for credit.
If Nevling Brothers paid the supplier the amount due on August 9, the appropriate entry would be:
A) Accounts Payable $\quad $ 14,400
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Purchases Discounts$\quad $  288
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash $\quad $ 14,112
B) Accounts Payable$\quad $  12,348
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash $\quad $ 12,348
C) Accounts Payable $\quad $ 12,600
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Purchases Discounts $\quad $ 252
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash $\quad $ 12,348
D) Accounts Payable $\quad $ 12,600
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash $\quad $ 12,600

Quizplus · Accepted Answer

Nevling Brothers records the following entries:
August 1: Purchases$\quad $  $14,400
$\quad $ $\quad $ $\quad $ $\quad $ Accounts payable $14,400
To record purchase of goods on credit.
August 5: Accounts payable$\quad $  $1,800
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Purchase returns $1,800
To record purchase returns.
August 9: Accounts payable$\quad $  $12,600
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Purchase discounts $ 252
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash $12,348
To record purchase discount and payment.

On August 1, Nevling Brothers Bought Goods with a List \quad

On August 1, Nevling Brothers Bought Goods with a List $\quad$