On August 1, Trina Company bought goods with a list price of $9,600, terms 2/10, n/30. The firm records purchases at invoice price using the perpetual inventory system. On August 5, Trina returned goods with a list price of $1,200 for credit.
If Trina paid the supplier the amount due on August 9, the appropriate entry would be:
A) Accounts Payable 9,600
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Inventory 192
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash 9,408
B) Accounts Payable 8,232
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash 8,232
C) Accounts Payable 8,400
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Inventory 168
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash 8,232
D) Accounts Payable 8,400
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash 8,400

Question

Quizplus · Accepted Answer

Trina records the following entries:
:
August 1: Inventory $9,600
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Accounts payable $9,600
To record purchase of goods on credit
August 5: Accounts payable $1,200
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Inventory $1,200
To record purchase returns
August 9: Accounts payable $8,400
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Inventory $ 168
$\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ Cash $8,232
To record purchase discount and payment

On August 1, Trina Company Bought Goods with a List \quad

On August 1, Trina Company Bought Goods with a List $\quad$