Juniper Company Uses a Perpetual Inventory System and the Gross

question 164

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 payment on August 16 is:

• A) Debit Accounts Payable $8,250; credit Merchandise Inventory $82.50; credit Cash $8,167.50.
• B) Debit Cash $8,250; credit Accounts Payable $8,250.
• C) Debit Accounts Payable $9,750; credit Merchandise Inventory $97.50; credit Cash $9,652.50.
• D) Debit Accounts Payable $8,167.50; credit Cash $8,167.50.
• E) Debit Merchandise Inventory $8,250; credit Cash $8,250.

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Definitions:

Social Identity Theory

A theory that explains how individuals categorize themselves and others into various social groups, leading to a sense of identity based on group membership.

Realistic Conflict Theory

A social psychological model that explains intergroup conflicts, hostility, and aggression as a result of competition over resources or status.

Self-Serving Bias

A common cognitive bias that leads individuals to attribute their successes to internal factors while blaming external factors for their failures, thus preserving their self-esteem.

Overgeneralized Belief

A cognitive bias where an individual applies a general rule too broadly, assuming that it applies in far more situations than it actually does.