Juniper Company, Inc

question 124

Multiple Choice

Juniper Company, Inc. 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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Definitions:

Transversus Abdominis

A muscle layer of the anterior and lateral abdominal wall which is deep to (beneath) the internal oblique muscle.

Rectus Abdominis

A long, flat muscle that extends along the front of the abdomen, responsible for flexing the lumbar spine and stabilizing the core.

Compress

To press together or into less space.

Prime Mover

Muscle that plays a major role in accomplishing a movement.