Question
A company purchased inventory for $ 5 000 from a vendor on account, FOB shipping point, with terms of 3/15, n/30. The company paid $
A company purchased inventory for $ 5 000 from a vendor on account, FOB shipping point, with terms of 3/15, n/30. The company paid $ 200 cash for freight in. The entry to record the payment of the invoice within 15 days of the invoice date by the purchaser would include ________. (Assume a perpetual inventory system.)
A.a debit to Accounts Payable for $5,000,
a credit to Merchandise Inventory for $200,
and a credit to Cash for 4,800
B.a debit to Accounts Payable for
$4,850
and a credit to Cash for $4,850
C.a debit to Accounts Payable for
$4,850,
a debit to Merchandise Inventory for
$150,
and a credit to Cash for $5,000
D.a debit to Accounts Payable for
$5,000,
a credit to Merchandise Inventory for
$150,
and a credit to Cash for $ 4 850
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