Question 3 (8 points) Merchandise was returned to a supplier.The goods were previously purchased on account.The goods had not been paid for and there...

Question 3

(8 points)

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.

Question 4

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?