A company using the perpetual inventory system purchased inventory worth $500,000 on account with credit terms of 3/15,n/45.Defective inventory of $50,000 was returned 3 days later,and the accounts were appropriately adjusted.If the company paid the invoice 25 days later,the journal entry to record the payment would be ________.
A)$500,000 debit to Accounts Payable and $500,000 credit to Cash
B)$450,000 debit to Accounts Payable and $450,000 credit to Cash
C)$500,000 debit to Accounts Payable,$486,500 credit to Cash,and $13,500 credit to Merchandise Inventory
D)$463,500 debit to Accounts Payable,$13,500 credit to Merchandise Inventory,and $450,000 credit to Cash

Question

Quizplus · Accepted Answer

The company returned $50,000 of inventory, reducing the payable to $450,000. Since the payment was made after the discount period (3/15), no discount applies, so the full amount of $450,000 is paid.

A Company Using the Perpetual Inventory System Purchased Inventory Worth