On April 6,Portland purchased $25,000 of inventory,terms 1/15,n/30.Portland uses a perpetual inventory system.The company paid for the purchase on April 26.The entry to record the payment on April 26 includes which of the following?

Question

Quizplus · Accepted Answer

Payment on April 26 would not qualify for the discount,so the entry would be debit Accounts Payable and credit Cash for $25,000.

On April 6,Portland Purchased $25,000 of Inventory,terms 1/15,n/30