On June 1, Nicholson Company purchased inventory on account with a cost of $1300. Credit terms were 2/10, net 30. On June 2, Nicholson Company returned 40 percent of the inventory. Nicholson Company uses the perpetual inventory system
What journal entry did Nicholson Company prepare on June 2?
A) debit Purchase Returns for $1300 and credit Accounts Payable for $1300
B) debit Cash for $1300 and credit Accounts Payable for $1300
C) debit Purchase Returns for $520 and credit Accounts Payable for $520
D) debit Accounts Payable for $520 and credit Inventory for $520
D
Business
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