Schulze Company sold merchandise in the amount of $23,200 to Edwardo Company on September 1, with credit terms of 2/10, n/30. The cost of the merchandise is $9,600. On September 4, Edwardo returns some of the merchandise, which was put back into Schulze's inventory. The selling price and the cost of the returned merchandise are $3,200 and $2,000, respectively.
Edwardo Company's journal entry on September 8, when they pay the amount due, will include: (assume both companies use the perpetual inventory method)
A) Credit Purchase Discounts $400
B) Credit Cash $20,776
C) Debit Accounts Payable $20,000
D) Credit Sales Discounts $400
Correct Answer:
Verified
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