Jenny Cosmetics bought $1,000 worth of merchandise from Glorial Company on account on June 16, with terms n/30. Glorial Company agreed to accept a 30-day, 8 percent, $1,000 note in settlement of the account. Which of the following journal entries records the original purchase in general journal form on Jenny's books?

Question

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The original purchase is recorded by debiting the Purchase account for $1,000 and crediting the Accounts Payable, Glorial Company account for $1,000. This entry reflects that the merchandise was purchased on account and that the amount owed is $1,000. The later transaction of settling the account with a note payable would be recorded separately.

Jenny Cosmetics Bought $1,000 Worth of Merchandise from Glorial Company