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Crane Company uses the perpetual inventory system. Crane Company made a purchase of merchandise on credit from Blossom Company on August 8, for $8000, terms

Crane Company uses the perpetual inventory system. Crane Company made a purchase of merchandise on credit from Blossom Company on August 8, for $8000, terms 2/10, n/30. On August 17, Crane makes the appropriate payment to Blossom. The entry on August 17 for Crane Company is:

Accounts Payable 8000
Inventory 160
Cash 7840
Accounts Payable 8000
Cash 8000
Accounts Payable 7840
Cash 7840
Accounts Payable 8000
Purchase Returns and Allowances 160
Cash 7840

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