A Company Using the Perpetual Inventory System Purchased Inventory Worth

question 141

Multiple Choice

A company using the perpetual inventory system purchased inventory worth $550,000 on account with credit terms of 2/15,n/45.Defective inventory of $60,000 was returned 3 days later,and the accounts were appropriately adjusted.If the company paid the invoice 20 days later,the journal entry to record the payment would be ________.

• A) $550,000 debit to Accounts Payable and $550,000 credit to Cash
• B) $490,000 debit to Accounts Payable and $490,000 credit to Cash
• C) $550,000 debit to Accounts Payable, $540,200 credit to Cash, and $9,800 credit to Merchandise Inventory
• D) $499,800 debit to Accounts Payable, $9,800 credit to Merchandise Inventory, and $490,000 credit to Cash

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Definitions:

S-H Bond

Refers to a chemical bond between sulfur and hydrogen, characteristic of thiols or sulfur-containing organic compounds.

Polar Covalent

A type of chemical bond where a pair of electrons is unequally shared between two atoms, leading to a partial positive charge on one atom and a partial negative charge on the other.

Cl-Cl Bond

A covalent bond between two chlorine atoms, often found in molecular chlorine (Cl2).

Non-polar Covalent

A type of chemical bond where two atoms share a pair of electrons with each other equally, resulting in no charge separation across the bond.