A Company Records Purchases Using the Net Method

question 17

Multiple Choice

A company records purchases using the net method.On February 1,they purchased merchandise inventory on account for $7,300 with terms of 1/10,n/30.The February 1 journal entry to record this transaction would include a:

• A)Debit to Merchandise Inventory of $7,300.
• B)Debit to Merchandise Inventory of $7,227.
• C)Debit to Merchandise Inventory of $73.
• D)Credit to Merchandise Inventory of $73.
• E)Credit to Accounts Payable of $7,300.

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Definitions:

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