Question

Johnson records purchases at invoice price and uses the perpetual inventory system. On July 5, Johnson returned $9,000 of goods purchased on account to the seller. How would Johnson record this transaction? Select one: A. Cash 9,000 Purchases 9,000 B. Accounts Receivable 9,000 Inventory 9,000 C. Accounts Payable 9,000 Purchases 9,000 D. Accounts Payable 9,000 Inventory 9,000

Name: johnson records purchases at invoice price and uses the perpetual inventory system on july 5 johnson returned 9000 of goods purchased on account to the seller how would johnson record this t 75572
Uploaded: 2022-09-29T00:51:05-08:00
Duration: 2 min 6 s
Channel: Azat Nurmukhametov
Description: johnson records purchases at invoice price and uses the perpetual inventory system on july 5 johnson returned 9000 of goods purchased on account to the seller how would johnson record this t 75572

          Johnson records purchases at invoice price and uses the perpetual inventory system. On July 5, Johnson returned $9,000 of goods purchased on account to the seller.
How would Johnson record this transaction?
Select one:
A.
Cash
9,000
Purchases
9,000
B.
Accounts Receivable
9,000
Inventory
9,000
C.
Accounts Payable
9,000
Purchases
9,000
D.
Accounts Payable
9,000
Inventory
9,000

Added by Christopher S.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Azat Nurmukhametov

09/29/2022

Step 1

Johnson is returning goods that were purchased on account, which means it will affect the Accounts Payable and Inventory accounts. Show more…

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Johnson records purchases at invoice price and uses the perpetual inventory system. On July 5, Johnson returned $9,000 of goods purchased on account to the seller. How would Johnson record this transaction? Select one: A. Cash 9,000 Purchases 9,000 B. Accounts Receivable 9,000 Inventory 9,000 C. Accounts Payable 9,000 Purchases 9,000 D. Accounts Payable 9,000 Inventory 9,000