14. on may 15, abco received merchandise it ordered along with the vendor’s invoice. the invoice amount was…

14. on may 15, abco received merchandise it ordered along with the vendor’s invoice. the invoice amount was $2,500 and had credit terms of net 30 days. the invoice was approved and was recorded in accounts payable. on may 22, abco received a $300 credit memo from the vendor. how is the credit memo recorded in accounts payable? select... it is not recorded in accounts payable with a $300 debit to accounts payable with a $300 credit to accounts payable

14. on may 15, abco received merchandise it ordered along with the vendor’s invoice. the invoice amount was $2,500 and had credit terms of net 30 days. the invoice was approved and was recorded in accounts payable. on may 22, abco received a $300 credit memo from the vendor. how is the credit memo recorded in accounts payable? select... it is not recorded in accounts payable with a $300 debit to accounts payable with a $300 credit to accounts payable

Answer

Brief Explanations:

Accounts Payable is a liability account. A credit memo from a vendor reduces the amount owed. Debiting Accounts Payable decreases the liability. Since the credit memo is for $300, a $300 debit to Accounts Payable is made to reflect the reduction in the amount owed to the vendor.

Answer:

With a $300 debit to Accounts Payable