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:

Behavior

The actions or reactions of an organism, often in response to external stimuli, observable by others.

Psychoanalysis

A therapeutic approach developed by Sigmund Freud focusing on unconscious processes as they are manifested in a person's present behavior.

Sigmund Freud

A founding figure in psychoanalysis, known for his theories on the unconscious mind, dreams, and psychosexual development.

Psychological Thought

The theories, principles, and concepts that form the basis of psychology as a scientific discipline.