Juniper Company Uses a Perpetual Inventory System and the Gross

question 14

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 purchase on August 7 is:

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

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Definitions:

Bandura

A psychologist known for his work on social learning theory and the concept of self-efficacy.

Observation

The process of closely monitoring or watching something or someone to gain information.

Bobo Doll

Refers to a classic experiment by Albert Bandura that demonstrated how children can learn aggressive behaviors through observation of adult models.

Bandura

Pertains to Albert Bandura, a psychologist recognized for his contributions to social learning theory and the idea of self-efficacy.