Joy's Accessories bought 65 necklaces for $12 each on account. The payment terms of 2/10, n/30. In addition, 13 necklaces were returned prior to payment. The entry to record the initial purchase would include:

Question

Quizplus · Accepted Answer

The initial purchase of 65 necklaces at $12 each totals $780 (65 * $12 = $780). This amount is recorded as a debit to Merchandise Inventory, reflecting the increase in inventory due to the purchase.

Joy's Accessories Bought 65 Necklaces for $12 Each on Account