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Rasner CoReturned Defective Goods Costing $5,000 to Markum Company on April

Question 94

Multiple Choice

Rasner Co.returned defective goods costing $5,000 to Markum Company on April 19, for credit.The goods were purchased April 10, on credit, terms 3/10, n/30.The entry by Rasner Co.on April 19, in receiving full credit is:


A)  Accounts Payable 5,000Merchandise Inventory 5,000\begin{array} { l }\text { Accounts Payable }&5,000 \\ \text {Merchandise Inventory }& &5,000\\\end{array}

B)  Accounts Payable 5,000 Merchandise Inventory 150Cash 5,150\begin{array} { l }\text { Accounts Payable }&5,000 \\ \text { Merchandise Inventory }& 150\\ \text {Cash }&&5,150 \\\end{array}

C)  Accounts Payable5,000urchase Discounts 150Merchandise Inventory 4,850\begin{array} { l }\text { Accounts Payable}&5,000 \\ \text {urchase Discounts }&&150 \\ \text {Merchandise Inventory }& &4,850\\\end{array}

D)  Accounts Payable 5,000Merchandise Inventory 150Cash 4,850\begin{array} { l }\text { Accounts Payable }& 5,000\\ \text {Merchandise Inventory }& 150\\ \text {Cash }&4,850 \\\end{array}

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