Juniper Company Uses a Perpetual Inventory System

question 98

Multiple Choice

Juniper Company uses a perpetual inventory system.The company purchased $9,750 of merchandise on August 7 with terms 1/10,n/30.On August 11,it returned $1,500 worth of merchandise.On August 16,it paid the full amount due.The correct journal entry to record the payment on August 16 is:

• A)Debit Merchandise Inventory $8,250;credit Cash $8,250.
• B)Debit Cash $8,250;credit Accounts Payable $8,250.
• C)Debit Accounts Payable $8,250;credit Merchandise Inventory $82.50;credit Cash $8,167.50.
• D)Debit Accounts Payable $9,750;credit Merchandise Inventory $97.50;credit Cash $9,652.50.
• E)Debit Accounts Payable $8,167.50;credit Cash $8,167.50.

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Muscovy

A historical region centered around Moscow, forming the core of the Russian state from the late medieval period until the early modern era.

Serfdom

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A political doctrine and practice where a single ruler holds supreme authoritative power, not restricted by any laws or opposition.

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