Juniper Company, Inc

question 109

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 26, it paid the full amount due. The correct journal entry to record the merchandise return on August 11 is:

• A)Debit Accounts Payable $1,500; credit Merchandise Inventory $1,500.
• B)Debit Accounts Payable $1,485; credit Merchandise Inventory $1,485.
• C)Debit Merchandise Inventory $1,500; credit Purchase Returns and Allowances $1,500.
• D)Debit Merchandise Inventory $1,500; credit Cash $1,500.
• E)Debit Accounts Payable $1,500; credit Purchase Returns and allowances $1,500.

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Definitions:

Performance Appraisal

An ongoing process whereby an employer evaluates an employee's job performance and productivity in relation to pre-established criteria and organizational objectives.

Win-Lose

A competitive situation or negotiation where one party's gain is directly proportional to another party's loss.

Managers Performance

The assessment of how effectively managers achieve their goals, lead teams, and contribute to organizational success.

Accurate

The quality of being correct, precise, or true representation of facts or details.