Juniper Company Uses a Perpetual Inventory System and the Gross

question 146

Multiple Choice

Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases.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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Definitions:

Federal Government

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Henry Clay

An American statesman and lawyer who served as a pivotal figure in the U.S. politics during the first half of the 19th century, known for his Compromise Measures and as a leading war hawk.

Bonus Bill

Legislation proposed after the War of 1812 to allocate federal funds for the construction of roads and canals, which was vetoed by President Madison in 1817 on constitutional grounds.

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