Juniper Company Uses a Perpetual Inventory System and the Gross

question 209

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 26,it paid the full amount due.The correct journal entry to record the merchandise return on August 11 is:

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

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Definitions:

American Federalism

The division of power between the national government and the individual states in the United States.

Unitary System

A sovereign state governed as a single entity in which the central government is supreme and any administrative divisions (subnational units) exercise only powers that the central government chooses to delegate.

Political Cultures

The deeply rooted norms, values, beliefs, and attitudes that define the relationship between citizens and government within a political system.

Individual Mandate

A requirement that individuals must obtain health insurance or face penalties, aimed at broadening the pool of insured and lowering health insurance costs.