Solved

Schulze Company Sold Merchandise in the Amount of $23,200 to Edwardo

Question 41

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents