A company that uses the perpetual inventory system purchases inventory for $64,0

Question

A company that uses the perpetual inventory system purchases inventory for $64,000 on account, with terms of 3/10, n/30. Which of the following is the journal entry to record the payment made within 10 days? O A. a debit to Merchandise Inventory for $1,920, a debit to Accounts Payable for $64,000, and a credit to Cash for O B. a debit to Accounts Payable for $64,000, a credit to Merchandise Inventory for $1,920, and a credit to Cash for O C. a debit to Accounts Payable for $64,000, a credit to Cash for $1,920, and a credit to Merchandise Inventory for O D. a debit to Accounts Payable for $62,080, a debit to Merchandise Inventory for $1,920, and a credit to Cash for $65,920 $62,080 $62,080 $64,000

Explanation / Answer

Journal Entry Accounting titles & Explanations Debit Credit Accounts payable 64,000 Merchandise inventory (64000*3%) 1920 cash (64000*97%) 62080 option B is the correct answer

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