Burlington Company Uses the Perpetual Inventory Method

question 176

Multiple Choice

Burlington Company uses the perpetual inventory method.On February 12,Burlington Company purchased merchandise inventory from Huffington Inc.with an invoice price of $140,000 and credit terms of 2/10,n/30.Burlington Company paid Huffington on February 20.How would Burlington Company record this transaction?

• A)Debit Accounts Payable for $140,000,credit Purchase Discounts for $2,800,and credit Cash for $137,200.
• B)Debit Accounts Payable for $140,000,credit Merchandise Inventory for $2,800,and credit Cash for $137,200.
• C)Debit Accounts Payable for $137,200,debit Purchase Discounts for $2,800,and credit Cash for $70,000.
• D)Debit Accounts Payable for $137,200 and credit Cash for $137,200.
• E)Debit Accounts Payable for $140,000 and credit Cash for $140,000.

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