Multiple Choice
A company purchased inventory for $3,000 from a vendor on account,FOB shipping point,with terms of 2/10,n/30.The company paid $100 cash for freight in.The entry to record payment of invoice within 2 days by the purchaser would include ________.(Assume a perpetual inventory system. )
A) a debit to Accounts Payable for $2,940 and a credit to Cash for $2,940
B) a debit to Accounts Payable for $3,000,a debit to Merchandise Inventory for $100,and a credit to Cash for $2,900
C) a debit to Accounts Payable for $3,000,a credit to Merchandise Inventory for $60,and a credit to Cash for $2,940
D) a debit to Accounts Payable for $2,940,a debit to Merchandise Inventory for $60,and a credit to Cash for $3,000
Correct Answer:
Verified
Correct Answer:
Verified
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