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On August 1,Savage Company Purchased $2,100 of Inventory on Account

Question 25

Multiple Choice

On August 1,Savage Company purchased $2,100 of inventory on account with credit terms of 4/10,net 30.Savage Company uses the perpetual inventory system.On August 15,Savage Company paid the amount due.What journal entry did they prepare on August 15?


A) debit Inventory for $2,100 and credit Accounts Payable for $2,100
B) debit Accounts Payable for $2,100,credit Inventory for $84 and credit Cash for $2,016
C) debit Accounts Payable for $2,100 and credit Cash for $2,100
D) debit Accounts Payable for $2,016 and credit Cash for $2,016

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