Question
On July 22, a company that uses the perpetual inventory system purchased merchandise inventory at a cost of $5,750 with credit terms 2/10, net 30.
On July 22, a company that uses the perpetual inventory system purchased merchandise inventory at a cost of $5,750 with credit terms 2/10, net 30. If the company pays for the purchase on August 1, what would be the appropriate journal entry?
A
| Accounts Payable | 5,750 | |
| Merchandise Inventory | 115 | |
| Cash | 5,635 |
B
| Accounts Payable | 5,750 | |
| Merchandise Inventory | 5,750 |
C
| Accounts Payable | 5,635 | |
| Cash | 5,635 |
D
| Merchandise Inventory | 5,750 | |
| Accounts Payable | 5,750 |
E
| Purchase Discount | 5,635 | |
| Accounts Payable | 5,635 |
Can someone please help me with this question?
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Business Accounting Uk Gaap Volume 1
Authors: Frank Wood, Alan Sangster
1st Edition
0273718762, 9780273718765
