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:

Question

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The entry to record the return would be a debit to accounts payable (to decrease the amount owed to Markum Company) and a credit to inventory (to decrease inventory on hand). Since Rasner Co. received full credit, there would not be any additional entries needed. The correct entry is shown in choice A.

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