Bronze Company purchased merchandise on account, $2,000, with terms 2/10, n/30. The payment for purchases is made within the discount period. Which of the following journal entries records the transaction in the cash payments journal?
A) Debit to Accounts Payable for $1,950, credit to Sales Discounts for $30, credit to Cash for $1,920
B) Debit to Accounts Payable for $1,940, credit to Cash for $1,940
C) Debit to Accounts Payable for $2,000, credit to Cash for $2,000
D) Debit to Accounts Payable for $2,000, credit to Purchases Discounts for $40, credit to Cash for $1,960
E) Debit to Accounts Payable, $2,040; credit Cash $2,040
Correct Answer:
Verified
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