Question
In: Finance
A company that uses the gross method of recording purchases and a perpetual inventory system made...
A company that uses the gross method of recording purchases and a perpetual inventory system made a purchase of $2,200 with terms of 2/10, n/30. The entry to record the purchase would be:
Debit Merchandise Inventory $2,156; credit Accounts Payable $2,156. Debit Merchandise Inventory $2,200; credit Accounts Payable $2,200. Debit Merchandise Inventory $2,156; credit Cash for $2,156. Debit Merchandise Inventory $2,156; debit Discounts Lost $44; credit Accounts Payable $2,200. Debit Accounts Payable $2,200; credit Discounts Lost $44; credit Cash $2,156.
Solutions
Expert Solution
| Answer is. Debit Merchandise inventory $2200; Credit Accounts payable $ 2200. | |||||||
| Explanation: | |||||||
| Journal entry for purchase: | |||||||
| Accounts title and explanations | Debit $ | Credit $ | |||||
| Merchandise inventory | 2200 | ||||||
| Accounts payable | 2200 | ||||||
jeff jeffy answered 1 year agoRelated Solutions
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1
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Sale
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