Clip Company bought $7,500 of merchandise from Tarpon Corporation,terms 1/10,n/45.Clip Company uses the voucher system and the periodic inventory method.The journal entry to record the payment under the gross method after the discount period would be to:
A) debit Vouchers Payable $7,500;credit Cash $7,500.
B) debit Vouchers Payable $7,500;credit Purchases Discount $75;credit Cash $7,425.
C) debit Vouchers Payable $7,425;credit Cash $7,425.
D) debit Vouchers Payable $7,425;debit Purchases Discount $75;credit Cash $7,500.
Correct Answer:
Verified
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