Company XYZ purchased toy merchandise for resale for a total of $10,000 with terms 2/10, n/30. If company XYZ uses the g

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answerhappygod
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Company XYZ purchased toy merchandise for resale for a total of $10,000 with terms 2/10, n/30. If company XYZ uses the g

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Company XYZ purchased toy merchandise for resale for a total of$10,000 with terms 2/10, n/30. If company XYZ uses the gross methodand returns $500 worth of merchandise to its supplier, the entry torecord the return of merchandise to the toy supplier includes whichof the following:
Multiple Choice
Debit to Purchases Returns and Allowances $490
Credit to Purchases Returns and Allowances $490
None of the other alternatives are correct
Debit to Accounts Payable $500
Debit to Discounts Lost $10
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