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Question
A company that uses the perpetual inventory system purchased merchandise inventory at a cost of $4,300 with credit terms 3/15, net 45. If the company elects to pay within the discount period, what would be the appropriate journal entry to record the payment?
A.
| Merchandise Inventory | 4,300 | |
| Accounts Payable | 4,300 |
B.
| Accounts Payable | 4,300 | |
| Merchandise Inventory | 4,300 |
C.
| Purchase Discount | 4,171 | |
| Accounts Payable | 4,171 |
D.
| Accounts Payable | 4,171 | |
| Cash | 4,171 |
E.
| Accounts Payable | 4,300 | |
| Merchandise Inventory | 129 | |
| Cash | 4,171 |
Answer
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Related questions
Q:
Periods
12 Percent 1
8929 2
1.6901 3
2.4018 4
3.0373 Assuming all revenue is to be received at the end of each year, what are the net cash flows for this investment if net present value equals ($11,790)?
A. $78,210
B. $10,920
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E. $33,513
Q:
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Q:
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Q:
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Q:
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D. An annual period separated into weekly budgets.
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Q:
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C. Solely by the budget committee.
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E. After the accounting period has begun.
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Q:
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530
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Pounds of raw material required for each finished Unit = 5 lbs.
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Q:
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