Emerald Co

question 81

Multiple Choice

Emerald Co.uses a perpetual inventory system and records purchases of merchandise at net cost.The company recently purchased 200 compact discs at an invoice price of $6,000 and terms of 2/10,n/30.Half of these discs had been mislabeled and were returned immediately to the supplier.The journal entry to record payment of this invoice after the discount period has expired will include a:

• A)Debit to Inventory for $3,000.
• B)Credit to Cash for $3,000.
• C)Debit to an expense account for $60.
• D)Credit to Cash for $2,940.