A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On
July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the merchandise return on July 7 is: Multiple Choice Debit Merchandise Inventory $1,600; credit Cash $1,600. Debit Merchandise Inventory $200; credit Accounts Payable $200. Debit Merchandise Inventory $200; credit Sales Returns $200. Debit Accounts Payable $200; credit Merchandise Inventory $200. Debit Accounts Payable $1,800; credit Purchase Returns $200; credit Merchandise Inventory $1,600.
For recording this journal entry we debited the account payable as it reduced the liabilities and at the same time it also reduced the asset so that the proper posting could be done
The quantity that exists when a market is in equilibrium. Equilibrium quantity is simultaneously equal to both the quantity demanded and quantity supplied. In a market graph, the equilibrium quantity is found at the intersection of the demand curve and the supply curve.
Agriculture is the basic source of food supply of all the countries of the world whether underdeveloped, developing or even developed. Raising supply of food by agricultural sector has, therefore, great importance for economic growth of a country.
President Roslin of Country XYZ knows that a new policy is needed to help solve the problem of rising unemployment in her nation. Her next step is to develop a plan.
