A Company Using the Perpetual Inventory System Purchased Inventory Worth

question 94

Multiple Choice

A company using the perpetual inventory system purchased inventory worth $510,000 on credit with terms of credit being 3/15,n/45.Defective inventory of $80,000 was returned 2 days later and the accounts were appropriately adjusted.If the company paid the invoice 20 days later,the journal entry to record the payment would be:

• A)$430,000 debit to Accounts payable and $430,000 credit to Cash.
• B)$510,000 debit to Accounts payable,$497,100 credit to Cash and $12,900 credit to Inventory.
• C)$442,900 debit to Accounts payable,$12,900 credit to Inventory and $430,000 credit to Cash.
• D)$510,000 debit to Accounts payable and $510,000 credit to Cash.

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Definitions:

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