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20/Renolta traders purchased goods on 7th April, 2018 for RO 78,000 on credit under the payment terms 3/10, n/30 and paid cash on 15th April, 2018. How would you record this in the books of buyer under perpetual inventory system? a. Account payable RO 78,000 Dr / Merchandise inventory RO 2,340 Cr / Cash RO 75,660 Cr b. Account payable RO 78,000 Dr / Cash RO 78,000 Cr c. Cash RO 75,660 Dr / Merchandise inventory RO 2,340 Dr /Account payable RO 78,000 Cr d. Cash RO 78,000 Dr / Account payable RO 78,000 Cr

20/Renolta traders purchased goods on 7th April, 2018 for RO 78,000 on credit under the payment terms 3/10, n/30 and paid cash on 15th April, 2018. How would you record this in the books of buyer under perpetual inventory system? a. Account payable RO 78,000 Dr / Merchandise inventory RO 2,340 Cr / Cash RO 75,660 Cr b. Account payable RO 78,000 Dr / Cash RO 78,000 Cr c. Cash RO 75,660 Dr / Merchandise inventory RO 2,340 Dr /Account payable RO 78,000 Cr d. Cash RO 78,000 Dr / Account payable RO 78,000 Cr

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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20/Renolta traders purchased goods on 7th April, 2018 for RO 78,000 on credit under the payment terms 3/10, n/30 and paid cash on 15th April, 2018. How would you record this in the books of buyer under perpetual inventory system? a. Account payable RO 78,000 Dr / Merchandise inventory RO 2,340 Cr / Cash RO 75,660 Cr b. Account payable RO 78,000 Dr / Cash RO 78,000 Cr c. Cash RO 75,660 Dr / Merchandise inventory RO 2,340 Dr /Account payable RO 78,000 Cr d. Cash RO 78,000 Dr / Account payable RO 78,000 Cr
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