A Company Records Purchases Using the Net Method

A company records purchases using the net method.On February 1,they purchased merchandise inventory on account for $7,300 with terms of 1/10,n/30.The February 1 journal entry to record this transaction would include a:

A) Debit to Merchandise Inventory of $7,300.
B) Debit to Merchandise Inventory of $7,227.
C) Debit to Merchandise Inventory of $73.
D) Credit to Merchandise Inventory of $73.
E) Credit to Accounts Payable of $7,300.

Correct Answer:

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