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
Posted: Fri Jul 01, 2022 8:26 am
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
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