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Farthington Soccer Supplies Purchases Merchandise from a Supplier on Credit,terms

Question 72

Multiple Choice

Farthington Soccer Supplies purchases merchandise from a supplier on credit,terms 2/10,n/30 for $15,300.When recording the purchase transaction in its purchases journal,Farthington would enter:


A) $15,300 in the Accounts Payable Cr.column and $15,300 in the Inventory Dr.column.
B) $15,300 in the Accounts Payable Cr.column and $15,300 in the Supplies Dr.column.
C) $15,300 in the Inventory Dr.column,$14,994 in the Accounts Payable Cr.column,and $306 in the Purchase Discount Cr.column.
D) $14,994 in the Inventory Dr.column and $14,994 in the Accounts Payable Cr.column.
E) $15,300 in the Other Accounts Dr.column and $15,000 in the Inventory Cr.column.

Correct Answer:

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