Question

Glover Co. returned defective goods costing $5,000 to Mal Company on April 19, for credit. Glover had purchased the goods on April 10, on credit, terms 3/10, n/30. The entry by Glover Co. on April 19, in receiving full credit is:

Answer 1

Answer and Explanation:

The journal entry is as follows;

Account payable Dr $5,000

      To Inventory $5,000

(being the entry recorded for receiving the full credit)

Here the account payable is debited as it decreased the liabilities and credited the inventory as it also decreased the assets

Hence, the same is to be considered