Elkins corporation uses the perpetual inventory method. on march 1, it purchased $33,000 of inventory, terms 2/10, n/30. on march 3, elkins returned goods that cost $3,000. on march 9, elkins paid the supplier. on march 9, elkins should credit: a. purchase discounts for $600.b. inventory for $600.c. purchase discounts for $660.d. inventory for $660.

b. inventory for $600

Explanation:

Before giving the answer, first we have to compute the amount which is shown below:

= (Purchase amount of inventory - the cost of returned goods) × discount rate

= ($33,000 - $3,000) × 2%

= $30,000 × 2%

= $600

Since the payment is made within 10 days. So, Elkins can avail of the 2% discount.

This transaction would credit the inventory for $600 as in the perpetual inventory method the amount of discount is adjusted to the inventory amount.

The journal entry is shown below:

Accounts payable A/c Dr $30,000

     To Cash A/c                                       $29,400

      To Inventory A/c                               $600

(Being the amount is paid and the difference would be credited to the cash account)

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number