Question

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:

Answer 1

Answer:

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.