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A company purchased $3,700 of merchandise on july 5 with terms 2/10, n/30. on july 7, it returned $850 worth of merchandise. on july 12, 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 payment on july 12 is:

Respuesta :

The correct journal entry to record the payment is; Debit Accounts Payable $2,850; credit Merchandise Inventory $57; credit Cash $2,793

How to edit journal entry?

We are told that the company purchased $3,700 of merchandise. Thus;

Debit Accounts Payable = $3700 - $850

Debit Accounts Payable = $2850

From online calculator, the credit Merchandise Inventory will be calculated to give $57.

Thus, the credit Cash is;

Credit Cash = Debit Accounts Payable - credit Merchandise Inventory

Credit Cash = 2850 - 57

Credit Cash = $2,793

Read more about Journal Entry at; https://brainly.com/question/14279491

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