Solved

On June 1,Neighbor Company Purchased Inventory on Account with a Cost

Question 23

Multiple Choice

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:

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