Asked by Caitlin Minton on Jul 16, 2024
Verified
Dawn Company uses a perpetual inventory system made a purchase of merchandise on credit from Wagne Corporation on August 3 for $7000 terms 2/10 n/45. On August 10 Dawn makes the appropriate payment to Wagne. The entry on August 10 for Dawn Company is a.
Accounts Payable 7,000 Cash 7,000\begin{array}{lrr} \text {Accounts Payable } &7,000\\ \text { Cash } &&7,000\\\end{array}Accounts Payable Cash 7,0007,000
b.
Accounts Payable 6,860 Cash 6,860\begin{array}{lrr} \text { Accounts Payable } &6,860\\ \text { Cash } &&6,860\end{array} Accounts Payable Cash 6,8606,860
c.
Accounts Payable 7,000 Purchase Returns and Allowances 140Cash 6,860\begin{array}{lrr} \text {Accounts Payable } &7,000\\ \text { Purchase Returns and Allowances } &&140\\ \text {Cash } &&6,860\end{array}Accounts Payable Purchase Returns and Allowances Cash 7,0001406,860
d.
Accounts Payable7,000 Inventory 140 Cash6,860\begin{array}{lrr} \text { Accounts Payable} &7,000\\ \text { Inventory } &&140\\ \text { Cash} &&6,860\end{array} Accounts Payable Inventory Cash7,0001406,860
Perpetual Inventory System
This accounting practice immediately logs the sale or acquisition of inventory via computerized point-of-sale systems and software for managing enterprise assets.
Accounts Payable
Short-term debts or obligations a company owes to its suppliers or creditors for goods and services received.
- Determine and execute the proper ledger records for specific merchandising operations.
Verified Answer
SC
Learning Objectives
- Determine and execute the proper ledger records for specific merchandising operations.
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