Dublin Company Uses the Periodic Inventory System B) $$\begin{array} { | c | r | r | } \hline \text { Cash } & 11,000 & \\\hline \text { Accounts Payable } & & 11,000 \\\hline\end{array}$$

question 252

Multiple Choice

Dublin Company uses the periodic inventory system.On February 1,the company purchased inventory on account for $11,000.The terms were 4/10,n/30.On February 2,it returned damaged goods worth $500 to the supplier.Give the journal entry for the payment if the invoice is paid after the discount period.(Round your answers to the nearest dollar.)

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Payable } & 11,000 & \\
• \hline \text { Cash } & & 10,560 \\
• \hline \text { Purchase Discounts } & & 440 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Cash } & 11,000 & \\
• \hline \text { Accounts Payable } & & 11,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Payable } & 10,500 & \\
• \hline \text { Cash } & & 10,500 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 10,560 & \\
• \hline \text { Purchase Discounts } & 440 & \\
• \hline \text { Accounts Payable } & & 11,000 \\
• \hline
• \end{array}\]

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Definitions:

Promissory Note

A financial document in which one party promises to pay another party a definite sum of money at a specified future date or on demand.

Missing Value

A data point that is not recorded or is absent in a data set or analysis.

Simple Interest

Interest calculated on the principal amount of a loan or deposit without compounding.

Daily Closing Balance

The total amount in an account at the end of each day, taking into account all transactions and activities of that day.