Question 06: Time Out Sports Bar has elected to take advantage of a purchase discount offered by one of its beer suppliers. Time Out Sports Bar uses a perpetual inventory system. Its payment terms from this supplier are 2/5, n/10. The bookkeeper is about to make the journal entry to record the payment for a $1,700 purchase, which was made during the discount period. The correct journal entry would be

Practice, Question 06 Time Out Sports Bar has elected to take advantage of a purchase discount offered by one of its beer suppliers. Time Out Sports Bar uses a perpetual inventory system. Its payment terms from this supplier are 2/5, n/10. The bookkeeper is about to make the journal entry to record the payment for a $1,700 purchase, which was made during the discount period. The correct journal entry would be a $1,700 credit to Beer Inventory, and a $1,700 debit to Accounts Payable a $1,700 credit to Accounts Payable, a $1,666 debit to Beer Inventory, and a $34 debit to Cash. a $1,666 debit to Beer Inventory, and a $1,666 credit to Accounts Payable. a $1,700 debit to Accounts Payable, a $34 credit to Beer Inventory, and a $1,666 credit to Cash