A Company Using the Perpetual Inventory System Purchased Inventory Worth

question 38

Multiple Choice

A company using the perpetual inventory system purchased inventory worth $500,000 on account with credit terms of 3/15,n/45.Defective inventory of $50,000 was returned 3 days later,and the accounts were appropriately adjusted.If the company paid the invoice 25 days later,the journal entry to record the payment would be ________.

• A)$500,000 debit to Accounts Payable and $500,000 credit to Cash
• B)$450,000 debit to Accounts Payable and $450,000 credit to Cash
• C)$500,000 debit to Accounts Payable,$486,500 credit to Cash,and $13,500 credit to Merchandise Inventory
• D)$463,500 debit to Accounts Payable,$13,500 credit to Merchandise Inventory,and $450,000 credit to Cash

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Definitions:

Painted Pottery

Ceramic vessels that are decorated with painted designs, common in various ancient and historical cultures around the world.

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An ancient Babylonian monument bearing the law code of King Hammurabi, one of the earliest and most complete written legal codes.

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A quality of being divine or godlike, often associated with gods, deities, or the sacred.

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The elaborate entrance gate to the ancient city of Babylon, constructed in about 575 BCE by order of King Nebuchadnezzar II, dedicated to the goddess Ishtar and known for its blue glazed tiles and depictions of dragons and bulls.