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Question
A company purchases merchandise on November 2 at a $2,400 invoice price (terms 3/10, n/30) and then pays all amounts owed on November 12. Using periodic inventory and net purchases methods, what are the proper entries to record these two transactions?
A.
| Nov. 2 | Merchandise Inventory | 2,400 | |
| Accounts Payable | 2,400 |
nventoryDiscounts Lostecord these two transactions.thod, what are the proper entries to record the pury purchases
| Nov. 11 | Accounts Payable | 2,400 | |
| Cash | 2,400 |
B.
| Nov. 2 | Purchases | 2,328 | |
| Accounts Payable | 2,328 |
| Nov. 11 | Accounts Payable | 2,328 | |
| Cash | 2,328 |
C.
| Nov. 2 | Purchases | 2,328 | |
| Accounts Payable | 2,328 |
| Nov. 11 | Accounts Payable | 2,328 | |
| Purchase Discounts Lost | 72 | ||
| Cash | 2,400 |
D.
| Nov. 2 | Merchandise Inventory | 2,328 | |
| Accounts Payable | 2,328 |
| Nov. 11 | Accounts Payable | 2,328 | |
| Inventory | 72 | ||
| Cash | 2,400 |
E.
| Nov. 2 | Purchases | 2,328 | |
| Accounts Payable | 2,328 |
| Nov. 11 | Accounts Payable | 2,328 | |
| Purchase Discounts Lost | 72 | ||
| Cash | 2,400 |
Answer
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