On July 22,a Company Purchased Merchandise Inventory at a Cost

question 54

Multiple Choice

On July 22,a company purchased merchandise inventory at a cost of $5,250 with credit terms 2/10,net 30.If the company pays for the purchase on August 1,what would be the appropriate journal entry?

• A)
• \[\begin{array} { | c | c | c | }
• \hline \text { Merchandise Inventory } & 5,250 & \\
• \hline \text { Accounts Payable } & & 5,250 \\
• \hline
• \end{array}\]
• B)
• \(\begin{array}{|c|c|c|}
• \hline \text { Accounts Payable } & 5,250 & \\
• \hline \text { Merchandise Inventory } & & 5,250 \\
• \hline
• \end{array}\)
• C)
• \(\begin{array}{|c|c|c|}
• \hline \text { Purchase Discount } & 5,145 & \\
• \hline \text { Accounts Payable } & & 5,145 \\
• \hline
• \end{array}\)
• D)
• \[\begin{array} { | c | c | c | }
• \hline \text { Accounts Payable } & 5,145 & \\
• \hline \text { Cash } & & 5,145 \\
• \hline
• \end{array}\]
• E)
• \[\begin{array} { | l | r | r | }
• \hline\text { Accourts Payable } & 5,250 & \\
• \hline \text { Merchandise Inventory } & & 105 \\
• \hline \text { Cash } & & 5,145 \\
• \hline
• \end{array}\]

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