Juniper Company, Inc

question 48

Multiple Choice

Juniper Company, Inc. uses the gross method of recording purchases and a perpetual inventory system. 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 purchase on August 7 is:

• A)Debit Merchandise Inventory $9,750; credit Cash $9,750.
• B)Debit Purchases $9,652.50; credit Accounts Payable $9,652.50.
• C)Debit Merchandise Inventory $9,750; credit Sales Returns $1,500; credit Cash $8,250.
• D)Debit Merchandise Inventory $9,750; credit Accounts Payable $9,750.
• E)Debit Accounts Payable $8,250; debit Purchase Returns $1,500; credit Merchandise Inventory $9,750.

---

Definitions:

Complete Details

All the comprehensive and specific pieces of information that fully explain a concept, situation, or requirement.

Executive Summary

A concise overview of a larger document that highlights key points, conclusions, and recommendations, intended for quick reading by decision-makers.

Persuasive Call

A communication strategy designed to convince or influence someone to take a specific action.

Action

The process or state of acting or being active, usually implying movement, change, or doing something.