Juniper Company, Inc

question 56

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 purchase on August 7 is:

• A)Debit Merchandise Inventory $9,750; credit Cash $9,750.
• B)Debit Accounts Payable $9,750; credit Merchandise Inventory $9,750.
• C)Debit Merchandise Inventory $9,750; credit Sales Returns $1,500; credit Cash $8,250.
• D)Debit Merchandise Inventory $9,750; credit Accounts Payable $9,750.
• E)Debit Accounts Payable $8,250; debit Purchase Returns $1,500; credit Merchandise Inventory $9,750.

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Definitions:

Interpretation

The act of explaining, reframing, or understanding the meaning or significance of something, often requiring a certain degree of subjective judgment.

Cognitive Interpretations

How individuals perceive, make sense of, and understand their experiences and the world around them through thought processes.

Common-sense View

A perspective based on what seems to be obvious or basic understanding to most people, often relying on practical and straightforward reasoning.

Expressive Reactions

Outward manifestations of emotions or feelings often observable through facial expressions, gestures, or vocal tone.