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On September 6, Mark Purchased Merchandise for His Electronic Games

Question 91

Essay

On September 6, Mark purchased merchandise for his electronic games store. The invoice was for $35,000 plus freight of $750, plus HST at 13%, terms 2/15, n/30. The freight was included on the invoice. On September 10, Mark returned merchandise that cost $5,000 for credit. On September 19, Mark paid the amount owed. Fill in the blanks below.
a) The credit to Accounts Payable on September 6 is ________.
b) The debit to Inventory on September 6 is ________.
c) The debit to Accounts Payable on September 10 is ________.
d) The credit to Inventory on September 19 is ________.
e) The credit to Cash on September 19 is ________.

Correct Answer:

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a) $40.300 ($35,000 × 1.13 + $...

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