a company purchased $1,800 of merchandise on july 5 with terms 2/10, n/30. on july 7, it returned $200 worth…

a company purchased $1,800 of merchandise on july 5 with terms 2/10, n/30. on july 7, it returned $200 worth of merchandise. on july 28, it paid the full amount due. assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the merchandise return on july 7 is: multiple choice debit merchandise inventory $1,600; credit cash $1,600. debit merchandise inventory $200; credit accounts payable $200. debit merchandise inventory $200; credit sales returns $200. debit accounts payable $200; credit merchandise inventory $200. debit accounts payable $1,800; credit purchase returns $200; credit merchandise inventory $1,600.

a company purchased $1,800 of merchandise on july 5 with terms 2/10, n/30. on july 7, it returned $200 worth of merchandise. on july 28, it paid the full amount due. assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the merchandise return on july 7 is: multiple choice debit merchandise inventory $1,600; credit cash $1,600. debit merchandise inventory $200; credit accounts payable $200. debit merchandise inventory $200; credit sales returns $200. debit accounts payable $200; credit merchandise inventory $200. debit accounts payable $1,800; credit purchase returns $200; credit merchandise inventory $1,600.

Answer

Brief Explanations:

When merchandise is returned under the perpetual - inventory system and gross method, accounts payable (the amount owed to the supplier) is decreased (debited) and merchandise inventory (the value of goods on hand) is decreased (credited) by the amount of the returned merchandise, which is $200 in this case.

Answer:

Debit Accounts Payable $200; credit Merchandise Inventory $200.