For a company using a perpetual inventory system, the journal entry to record the purchase of $1,700 of goods on account, with terms of 3/10, n/30, would include a

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Since the company is using a perpetual inventory system, it records each purchase of merchandise inventory in a separate account. Therefore, the journal entry to record the purchase of $1,700 of goods on account would include a debit to the merchandise inventory account for the full amount of the purchase, which is $1,700. The journal entry would also include a credit to accounts payable for the same amount of $1,700. The terms of 3/10, n/30 mean that if the company pays within 10 days, it can take a 3% discount. Otherwise, the full amount is due within 30 days. No discount is taken in this journal entry because the company has not paid yet.

For a Company Using a Perpetual Inventory System, the Journal