Verified Answer :

meerkat18

Tyler purchased something on account. I'm using the gross method of recording.

1) Purchases  xx
         Accounts Payable       xx

2) Return of merchandise w/in discount period
 
     Accounts Payable   500
                  Purchases         500

3) Payment of remaining merchandise w/in discount period
      Accounts Payable  xx
                     Cash                             xx
                     Purchase discounts   xx

Merchandise that can be discounted but returned w/in the discount period should be recorded with its original value.




Meochi

The answer to your question is "Debit Accounts Payable/Suppliers Name for $500; credit Purchases Returns and Allowances for $500."

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