TB MC Qu. 05-160 (Algo) Morgan, Inc. uses a perpetual inventory...

Morgan, Inc. uses a perpetual inventory system and the net method of recording purchases. On May 12, a merchandise purchase of $17,200 was made on credit, 3/10, n/30. The journal entry to record this purchase is:

Multiple Choice

• Account Title	Debit	Credit
  Merchandise Inventory	17,200
  Accounts Payable		17,200

• Account Title	Debit	Credit
  Accounts Payable	17,200
  Merchandise Inventory		17,200

• Account Title	Debit	Credit
  Purchases	17,200
  Accounts Payable		17,200

• Account Title	Debit	Credit
  Purchases	16,684
  Accounts Payable		16,684

• Account Title	Debit	Credit
  Merchandise Inventory	16,684
  Accounts Payable		16,684