Concord Co. returned defective goods costing $5700 to Ivanhoe Company on April 19, for credit. The goods were purchased April 10, on credit, terms 2/10, n/30. The entry by Concord Co. on April 19, in receiving full credit is:

Question

Business

Kasen Aguirre

17 February, 18:31

Concord Co. returned defective goods costing $5700 to Ivanhoe Company on April 19, for credit. The goods were purchased April 10, on credit, terms 2/10, n/30. The entry by Concord Co. on April 19, in receiving full credit is:

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Answers (1)

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Deangelo Rasmussen · Answer 1

Journal Entry

Explanation:

The Journal entry is shown below:-

Accounts Payable Dr, $5,700

To Inventory $5,700

(Being defective goods is recorded)

Therefore, in the given situation, Concord company is returning the defective goods and no payment was made. So, which results in a decrease in accounts payable and inventory.