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Question
On July 22, a company that uses the perpetual inventory system purchased merchandise inventory at a cost of $5,250 with credit terms 2/10, net 30. If the company pays for the purchase on August 1, what would be the appropriate journal entry?
A.
| Merchandise Inventory | 5,250 | |
| Accounts Payable | 5,250 |
B.
| Accounts Payable | 5,250 | |
| Merchandise Inventory | 5,250 |
C.
| Purchase Discount | 5,145 | |
| Accounts Payable | 5,145 |
D.
| Accounts Payable | 5,145 | |
| Cash | 5,145 |
E.
| Accounts Payable | 5,250 | |
| Merchandise Inventory | 105 | |
| Cash | 5,145 |
Answer
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Related questions
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Periods
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