Merchandise was returned to a supplier. The goods were previously purchased on account. The goods had not been paid for and there were no discounts. Assuming a periodic system, what journal entry is needed by the purchaser to record the return?
Question 3 options:
Debit Accounts Payable, and Credit Purchase Discounts.
Debit Accounts Payable, and Credit Inventory.
Debit Accounts Payable, and Credit Purchases.
Debit Accounts Payable, and Credit Purchase Returns and Allowances.
Alpha Company provided the following data concerning its income statement: sales, $1,010,000; purchases, $446,000; beginning inventory, $275,000; ending inventory, $287,000; operating expenses, $117,000; freight-in, $5,000; sales discounts, $19,000; purchases discounts, $15,000; sales returns & allowances, $119,000; and purchases returns & allowances, $32,000. The data is complete, and provide the basis for preparation of an income statement. How much is net income?