Answer: Please see explanation column for answer
Explanation: A perpetual inventory system maintains inventory balances ensuring that records are continually made immediately when purchases or sale are made together with any returns which are recorded in inventory accounts.
To record purchase of merchandise
Date Account Debit Credit
Nov 5 Merchandise Inventory $8500
Accounts payable $8,500
To record return of merchandise purchased
Nov 7 Accounts payable $300
Merchandise Inventory $300
To record payment of inventory
Nov 15 Accounts payable $8,200
Cash $7,954
Merchandise Inventory $246
Calculation =
Nov 5 - Cost of merchandise purchased = No of units x unit price = 850 x 10 =$8500
Nov 7 - Cost of merchandise returned = No of units returned x unt price = 30 x 10 = $300
discount received = Balance from accounts payable x discount rate = (8,500- 300) x 3%= 8200 x 0.03= $246
Cash = Accounts payable - Merchandise Inventory = $8200 - 246 =$7984.
