Morgan, Inc B) C) D) $$\begin{array} { | l | r | r | } \hline \text { Purchases } & 14.700 & \\\hline \text { Accounts Payable } & & 14.700 \\\hline\end{array}$$

question 123

Multiple Choice

Morgan, Inc. uses a perpetual inventory system and the net method of recording purchases. On May 12, a merchandise purchase of $15,000 was made on credit, 2/10, n/30. The journal entry to record this purchase is:

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Merchandite Inventory } & 15,000 & \\
• \hline \text { Accounts Payable } & & 15,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Payable } & 15,000 & \\
• \hline \text { Merchandite Inventory } & & 15,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | l | }
• \hline \text { Merchandite Inventory } & 14.700 & \\
• \hline \text { Accounts Payable } & & 14.700 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Purchases } & 14.700 & \\
• \hline \text { Accounts Payable } & & 14.700 \\
• \hline
• \end{array}\]
• E) \[\begin{array} { | l | r | r | }
• \hline \text { Purchases } & 15,000 & \\
• \hline \text { Accounts Payable } & & 15,000 \\
• \hline
• \end{array}\]

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The total property, assets, and liabilities that a person owns or is responsible for.