Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company purchased inventory for $4,000 from a vendor on account, FOB shipping point, with terms of 3/10, n/30. The company paid $200 cash

image text in transcribed

A company purchased inventory for $4,000 from a vendor on account, FOB shipping point, with terms of 3/10, n/30. The company paid $200 cash for freight in. The entry to record the payment of the invoice within 10 days of the invoice date by the purchaser would include (Assume a perpetual inventory system.) O A. a debit to Accounts Payable for $3,880 and a credit to Cash for $3,880 OB. a debit to Accounts Payable for $4,000, a credit to Merchandise Inventory for $120, and a credit to Cash for $3,880 OC. a debit to Accounts Payable for $3,880, a debit to Merchandise Inventory for $120, and a credit to Cash for $4,000 OD. a debit to Accounts Payable for $4,000, a credit to Merchandise Inventory for $200, and a credit to Cash for $3,800

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

23rd Edition

978-0324662962

More Books

Students also viewed these Accounting questions

Question

Difference between truncate & delete

Answered: 1 week ago