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Social Science Clinic => Accounting => Topic started by: kaid0807 on Feb 18, 2020

Title: Scout Company purchases goods for resale from Shakes, Inc. The amount of the purchase is $10,500 ...
Post by: kaid0807 on Feb 18, 2020

Scout Company purchases goods for resale from Shakes, Inc. The amount of the purchase is $10,500 with terms of 3/10, n/30. Scout later returns $500 of the goods. Under the perpetual inventory system, the journal entry to record the return is:
◦ debit Purchase Returns and Allowances; credit Accounts Payable - Shakes, Inc.
◦ debit Inventory; credit Accounts Payable - Shakes, Inc.
◦ debit Accounts Payable - Shakes, Inc.; credit Inventory.
◦ debit Accounts Payable - Shakes, Inc.; credit Purchase Returns and Allowances.

Title: Scout Company purchases goods for resale from Shakes, Inc. The amount of the purchase is $10,500 ...
Post by: janieazgirl on Feb 18, 2020

debit Accounts Payable - Shakes, Inc.; credit Inventory.

Title: Re: Scout Company purchases goods for resale from Shakes, Inc. The amount of the purchase is $10,500
Post by: lisasenin on Nov 13, 2022

thank you