On April 6,Lopez Co.purchased $5,000 of merchandise,terms 1/15,n/30.Lopez Co.paid for the purchase on April 26.The entry to record the payment on April 26 in a perpetual inventory system includes which of the following?
A)A credit to inventory for $50.
B)A debit to accounts payable for $4,900.
C)A credit to accounts payable for $5,000.
D)A credit to cash for $5,000.

Question

Quizplus · Accepted Answer

Since Lopez Co. paid for the purchase on April 26, there is a credit to cash for $5,000. There is no credit to inventory since the payment was made after the discount period. There is no debit to accounts payable for the full amount of the purchase since the discount was taken into consideration. Therefore, the correct choice is D.