Solved

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

Question 117

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 7,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)
 Accounts Payable 5,250 Cash 5,250\begin{array}{|l|l|l|}\hline \text { Accounts Payable } & 5,250 & \\\hline \text { Cash } & & 5,250 \\\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)
 Accounts Payable 5,250 Merchandise Inventory 105 Cash 5,145\begin{array} { | l | r | r | } \hline \text { Accounts Payable } & 5,250 & \\\hline \text { Merchandise Inventory } & & 105 \\\hline \text { Cash } & & 5,145 \\\hline\end{array}

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents