On June 1,Neighbor Company purchased inventory on account with a cost of $3,000.The credit terms were 3/10,net 30.On June 2,Neighbor returned 50 percent of the inventory.Neighbor uses the perpetual inventory system.On June 8,Neighbor paid for the inventory.What journal entry did Neighbor Company prepare on June 8?
A) debit Purchase Discount for $45,debit Cash for $1,455 and credit Accounts Payable for $1,500
B) debit Accounts Payable for $1,500 and credit Cash for $1,500
C) debit Accounts Payable for $1,500 credit Purchase Discount for $45 and credit Cash for $1,455
D) debit Accounts Payable for $1,500,credit Inventory for $45 and credit Cash for $1,455
Correct Answer:
Verified
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