On June 15,a retailer purchases merchandise on account from a supplier for $2,000 terms 3/10,n/30.On June 18,the retailer returns merchandise purchased for $600 for a reduction in the amount owing.On June 22,the retailer pays their account.Under a perpetual inventory system the journal entry to record the payment includes:
A)$1,400 will be debited to Accounts Payable,$1,358 will be credited to Cash and $42 will be credited to Inventory.
B)$1,358 will be credited to Cash,$1,400 will be debited to Accounts Payable and $42 will be credited to Discounts.
C)$1,358 will be credited to Cash,$1,358 will be debited to Accounts Payable.
D)$1,400 will be credited to Cash,$1,358 will be debited to Accounts Payable,and $42 will be debited to Inventory.

Question

Quizplus · Accepted Answer

$2,000 - 600 = $1400 owing
$1400 × 3% discount = $42
1400-42 = $1,358 amount paid.

On June 15,a Retailer Purchases Merchandise on Account from a Supplier