On July 1,Darin Company sold inventory costing $5,000 to Dee Company for $6,000,terms 3/10,n/30.Both companies use the perpetual inventory system.Dee Company pays the invoice on July 8 and takes the appropriate discount.What journal entry will be recorded by Dee Company on July 8?
A) Debit Accounts Payable and credit Cash for $6,000
B) Debit Accounts Payable for $5,820,credit Inventory for $180,and credit Cash for $6,000
C) Debit Accounts Payable for $6,000,credit Cash for $5,820,and credit Inventory for $180
D) Debit Cost of Goods Sold and credit Cash for $5,000
Correct Answer:
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