Merchandise with an invoice price of $3,600 was purchased on February 3, terms 2/15, n/60. The...

Merchandise with an invoice price of $3,600 was purchased on February 3, terms 2/15, n/60. The company uses the gross method to record purchases and a perpetual inventory system. The entry to record a cash payment of this purchase obligation on February 17 is:

Debit Accounts Payable $3,528; credit Cash $3,528.

Debit Accounts Payable $3,600; credit Cash $3,600.

Debit Accounts Payable $3,528; debit Discounts Lost $72; credit Cash $3,600.

Debit Accounts Payable $3,600; credit Merchandise Inventory $72; credit Cash $3,528.

Debit Accounts Payable $3,600; credit Discounts Lost $72; credit Cash $3,528.

Expert Solution

jeff jeffy answered 2 years ago

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