Question
Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 1/10, n/30 for $16,300. Assume the company uses a perpetual inventory system, and records
Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 1/10, n/30 for $16,300. Assume the company uses a perpetual inventory system, and records purchases using the gross method. When recording the purchase transaction in its purchases journal, Farthington would enter: Multiple Choice $16,300 in the Accounts Payable Cr. column and $16,300 in the Inventory Dr. column. $16,300 in the Accounts Payable Cr. column and $16,300 in the Supplies Dr. column. $16,300 in the Inventory Dr. column, $16,137 in the Accounts Payable Cr. column, and $163 in the Purchase Discount Cr. column. $16,137 in the Inventory Dr. column and $16,137 in the Accounts Payable Cr. column. $16,300 in the Other Accounts Dr. column and $16,300 in the Inventory Cr. column.
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