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On March 15,2010,Ryan Company Purchased $10,000 of Merchandise on Credit \quad

Question 71

Multiple Choice

On March 15,2010,Ryan Company purchased $10,000 of merchandise on credit subject to terms of 2/10,n/30.Ryan Company records its purchases using the gross amount.The periodic inventory system is used.Which of the following journal entries is correct when Ryan Company pays for these goods on March 30,2010?


A) Accounts payable \quad 9,800
\quad Cash \quad \quad \quad \quad \quad \quad 9,800
B) Accounts payable \quad \quad 10,000
\quad Cash \quad \quad \quad \quad \quad \quad \quad \quad 10,000
C) Accounts payable \quad 10,000
\quad Cash \quad \quad \quad \quad \quad \quad \quad 9,800
\quad Purchase discounts \quad \quad \quad 200
D) Accounts payable \quad 9,800
Purchase discounts \quad 200
\quad \quad Cash \quad \quad \quad \quad \quad \quad 10,000

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