A company uses the perpetual inventory system and recorded the following entry: $$\begin{array} { | l | r | r | }
\hline \text { Accounts Payable } & 2,500 & \
\hline \text { Merchandise Irventory } & & 50 \
\hline \text { Cash } & & 2,450 \
\hline
\end{array}$$ This entry reflects a:

Question

A company uses the perpetual inventory system and recorded the following entry: $$\begin{array} { | l | r | r | } 
\hline \text { Accounts Payable } & 2,500 & \
\hline \text { Merchandise Irventory } & & 50 \
\hline \text { Cash } & & 2,450 \
\hline
\end{array}$$ This entry reflects a:

Quizplus · Accepted Answer

The entry reflects a payment of an account payable of $2,500 with a 2% cash discount, which is $50, resulting in a cash payment of $2,450.

A Company Uses the Perpetual Inventory System and Recorded the Following