On 12-27-YR01 Kroger Inc. purchased grocery merchandise for resale for $100 on credit terms 2/10,n/30. At yearend, 12-31-YR01, the merchandise was in transit and had not been received by Kroger. Select the best answer below regarding whether Kroger should report a liability for this merchandise on its 12-31-YR01 balance sheet. Continuing with question \#3 above, if Kroger uses the Gross Method of recording payment discounts and employs a Perpetual Inventory System, what journal entry would be made when the purchase is recorded? e. None of the answers provided is correct