Day Company purchased $3,000 of merchandise on credit, terms 3/15 n/30. The entry to record payment for the merchandise within the discount period under a perpetual inventory system would include a:

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Under a perpetual inventory system, when a payment is made within the discount period, the inventory account is directly credited to reflect the discount received. The terms 3/15, n/30 mean that a 3% discount is available if payment is made within 15 days. Therefore, the discount amount is $3,000 x 3% = $90. The credit to Inventory reduces the cost of the inventory by the amount of the discount received.

Day Company Purchased $3,000 of Merchandise on Credit, Terms 3/15