A company that uses the perpetual inventory system purchases inventory for

$ 62 comma 000

on account, with terms of

2

/10,

n/30. Which of the following is the journal entry to record the payment made within 10 days?

A.

a debit to Accounts Payable for

$ 62 comma 000

,

a credit to Merchandise Inventory for

$ 1 comma 240

,

and a credit to Cash for $ 60 comma 760

B.

a debit to Accounts Payable for

$ 60 comma 760

,

a debit to Merchandise Inventory for

$ 1 comma 240

,

and a credit to Cash for $ 62 comma 000

C.

a debit to Accounts Payable for

$ 62 comma 000

,

a credit to Cash for

$ 1 comma 240

,

and a credit to Merchandise Inventory for $ 60 comma 760

D.

a debit to Merchandise Inventory for

$ 1 comma 240

,

a debit to Accounts Payable for

$ 62 comma 000

,

and a credit to Cash for $ 63 comma 240