On Dec. 20, X-Mart returned $100 of defective merchandise to its supplier. Demonstrate the required journal entry that X-Mart

X-Mart uses the periodic inventory system to account tor its merchandise. On May 1, it sold $400 of
merchandise on account with terms of 2/15. n/40. On May 3, its customer returned $50 of
merchandise due to defect. On May 11, its customer paid the remaining balance due. Demonstrate
the required Journal entry to record the receipt of payment by selecting all of the correct actions
below. (Check all that apply.)

Debit cash $342.
Credit Accounts Receivable $400.
Debit Sales Discounts $8.
Credit Accounts Payable $350.
Debit Sales Discounts $7.
Credit Accounts Receivable $350.
Debit cash $392.



On Dec. 20, X-Mart returned $100 of defective merchandise to its supplier. Demonstrate the required
journal entry that X-Mart will record for the return, assuming the purchase was made on account and
that X-Mart uses the periodic inventory system.


Debit Accounts Payable $100 and credit Purchase Returns $100.
Debit Purchase Returns and Allowances $100 and credit Accounts Payable $100.
Debit Accounts Payable $100 and credit Cash $100.
Debit Accounts Payable $100 and credit Merchandise Inventory $100.