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On July 22,a Company Purchased Merchandise Inventory at a Cost

Question 118

Multiple Choice

On July 22,a company purchased merchandise inventory at a cost of $5,250 with credit terms 2/10,net 30.If the company pays for the purchase on August 1,what would be the appropriate journal entry?


A)
 Merchandise Inventory 5,250 Accounts Payable 5,250\begin{array} { | c | c | c | } \hline \text { Merchandise Inventory } & 5,250 & \\\hline \text { Accounts Payable } & & 5,250 \\\hline\end{array}
B)
 Accounts Payable 5,250 Merchandise Inventory 5,250\begin{array}{|c|c|c|}\hline \text { Accounts Payable } & 5,250 & \\\hline \text { Merchandise Inventory } & & 5,250 \\\hline\end{array}

C)
 Purchase Discount 5,145 Accounts Payable 5,145\begin{array}{|c|c|c|}\hline \text { Purchase Discount } & 5,145 & \\\hline \text { Accounts Payable } & & 5,145 \\\hline\end{array}

D)
 Accounts Payable 5,145 Cash 5,145\begin{array} { | c | c | c | } \hline \text { Accounts Payable } & 5,145 & \\\hline \text { Cash } & & 5,145 \\\hline\end{array}
E)
 Accourts Payable 5,250 Merchandise Inventory 105 Cash 5,145\begin{array} { | l | r | r | } \hline\text { Accourts Payable } & 5,250 & \\\hline \text { Merchandise Inventory } & & 105 \\\hline \text { Cash } & & 5,145 \\\hline\end{array}

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