a-company-receives-a-300-allowance-for-defective-inventory-but-keeps-the-goods-h

Question

A company receives a $300 allowance for defective inventory but keeps the goods. How should this be recorded?

Accepted Answer

Debit Accounts Payable $$300; Credit Purchase Allowances 300$$

Answer

Debit Inventory $$300; Credit Purchase Allowances 300$$

Answer

Debit Accounts Payable $$300; Credit Inventory 300$$

Answer

Debit Purchase Allowances $$300; Credit Accounts Payable 300$$

A company receives a \$300 allowance for defective inventory but keeps the goods. How should this be recorded?