A Company Purchased Merchandise Inventory at a Cost of $4,300

question 55

Multiple Choice

A company purchased merchandise inventory at a cost of $4,300 with credit terms 3/15,net 45.If the company elects to pay within the discount period,what would be the appropriate journal entry?

• A)
• \[\begin{array} { | c | c | c | }
• \hline \text { Merchandise Inventory } & 4,300 & \\
• \hline \text { Accounts Payable } & & 4,300 \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | c | c | c | }
• \hline \text { Accounts Payable } & 4,300 & \\
• \hline \text { Merchandise Inventory } & & 4,300 \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | c | c | c | }
• \hline \text { Purchase Discount } & 4,171 & \\
• \hline \text { Accounts Payable } & & 4,171 \\
• \hline
• \end{array}\]
• D)
• \[\begin{array} { | c | c | c | }
• \hline \text { Accounts Payable } & 4,171 & \\
• \hline \text { Cash } & & 4,171 \\
• \hline
• \end{array}\]
• E)
• \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Payable } & 4,300 & \\
• \hline \text { Merchandise Inventory } & & 129 \\
• \hline \text { Cash } & & 4,171 \\
• \hline
• \end{array}\]

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