Question

Jayhawk had previously purchased merchandise for $40,000 The company returned $4,000 of the merchandise previously purchased because it was damaged. . The journal entry that Jayhawk would make for the return of the merchandise will include a:

Answer 1

the options are missing, but I wrote down the two possible answers

the journal entry to record the purchase assuming perpetual inventory method:

Dr Merchandise inventory 40,000

Cr Accounts payable 40,000

the journal entry to record the damaged merchandise assuming perpetual inventory method:

Dr Accounts payable 4,000

Cr Merchandise inventory 4,000

OR

the journal entry to record the purchase assuming periodic inventory method:

Dr Purchases 40,000

Cr Accounts payable 40,000

the journal entry to record the damaged merchandise assuming periodic inventory method:

Dr Accounts payable 4,000

Cr Purchases returns 4,000