On June 1,Neighbor Company Purchased Inventory on Account with a Cost

question 2

Multiple Choice

On June 1,Neighbor Company purchased inventory on account with a cost of $5,000.The credit terms were 2/10,net 30.On June 2,Neighbor Company returned 50 percent of the inventory.Neighbor Company uses the perpetual inventory system.On June 8,Neighbor Company paid for the inventory.What journal entry did Neighbor Company prepare on June 8?

• A)debit Purchase Discount for $50,debit Cash for $2,450 and credit Accounts Payable for $2,500
• B)debit Accounts Payable for $2,500 and credit Cash for $2,500
• C)debit Accounts Payable for $2,500,credit Purchase Discount for $50 and credit Cash for $2,450
• D)debit Accounts Payable for $2,500,credit Inventory for $50 and credit Cash for $2,450

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Definitions:

Overt Behaviors

Observable actions or reactions of an individual in response to external or internal stimuli.

Consequences

Outcomes or effects that follow an action or decision.

Issue

A significant topic or problem for debate or discussion.

Better

An improvement in condition or quality, indicating a more favorable situation than before.