On May 13,Wagoner Company purchased merchandize worth $2,400 on credit,terms 2/10,n/30.The amount was paid on May 20.What is the required journal entry to record the payment under the periodic inventory system?
A) Accounts Payable 2,352
Purchases Discounts 48
Cash 2,400
B) Accounts Payable 2,400
Purchases Discounts 48
Cash 2,352
C) Cash 2,352
Purchases Discounts 48
Accounts Payable 2,400
D) Cash 2,400
Purchases Discounts 48
Accounts Payable 2,448

Question

Quizplus · Accepted Answer

Under the periodic inventory system, the initial purchase is recorded as a debit to Purchases and a credit to Accounts Payable. When the payment is made within the discount period, a credit is given to Purchases Discounts. The journal entry to record the payment would be:
Accounts Payable 2,400
Purchases Discounts 48
Cash 2,352

On May 13,Wagoner Company Purchased Merchandize Worth $2,400 on Credit,terms