A company that uses the net method of recording purchases and a perpetual inventory system purchases $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. the correct journal entry to record the payment on july 28 is:

Dr. Accounts Payable(1,800 - 200)$1,600

Cr. Cash$1,600

Explanation:

Since the company uses the net method of recording purchases and a perpetual inventory system and purchases $1,800 of merchandise on july 5 with terms 2/10, n/30.

After the returns on July 7, of $200 worth of merchandise.

The correct journal entry to record the payment on July 28 is:

1. The Journal entries will be for the purchases amount less the returns of inventory

2. The discount of 2% has elapsed since the company did not pay within 10 days.

JOURNAL ENTRY

Dr. Accounts Payable(1,800 - 200)$1,600

Cr. Cash$1,600

Being settlement of purchases of $1800 on account less purchases returns of $200

choices : )

explanation: