Burlington Company Uses the Perpetual Inventory Method

Burlington Company uses the perpetual inventory method.On February 12,Burlington Company purchased merchandise inventory from Huffington Inc.with an invoice price of $140,000 and credit terms of 2/10,n/30.Burlington Company paid Huffington on February 20.How would Burlington Company record this transaction?

A) Debit Accounts Payable for $140,000,credit Purchase Discounts for $2,800,and credit Cash for $137,200.
B) Debit Accounts Payable for $140,000,credit Merchandise Inventory for $2,800,and credit Cash for $137,200.
C) Debit Accounts Payable for $137,200,debit Purchase Discounts for $2,800,and credit Cash for $70,000.
D) Debit Accounts Payable for $137,200 and credit Cash for $137,200.
E) Debit Accounts Payable for $140,000 and credit Cash for $140,000.

Correct Answer:

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