A company that uses the perpetual inventory system purchases inventory for $64,000 on account, with terms of 2/10, n/30. Which of the following is the journal entry to record the payment made in 11 days? O a debit to Cash for $64,000 and a credit to Accounts Payable for $64,000 O a debit to Accounts Payable for $64,000, a credit to Merchandise Inventory for $1280, and a credit to Cash for $62,720 O a debit to Accounts Payable for $64,000, a credit to Cash for $1280, and a credit to Merchandise Inventory for $62,720 O a debit to Accounts Payable for $64,000 and a credit to Cash for $64,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A company that uses the perpetual inventory system purchases inventory for $64,000 on account, with terms of 2/10, n/30. Which of the following is the journal entry to record
the payment made in 11 days?
O a debit to Cash for $64,000 and a credit to Accounts Payable for $64,000
O a debit to Accounts Payable for $64,000, a credit to Merchandise Inventory for $1280, and a credit to Cash for $62,720
O a debit to Accounts Payable for $64,000, a credit to Cash for $1280, and a credit to Merchandise Inventory for $62,720
a debit to Accounts Payable for $64,000 and a credit to Cash for $64,000
Quoction 4 of 38
Transcribed Image Text:A company that uses the perpetual inventory system purchases inventory for $64,000 on account, with terms of 2/10, n/30. Which of the following is the journal entry to record the payment made in 11 days? O a debit to Cash for $64,000 and a credit to Accounts Payable for $64,000 O a debit to Accounts Payable for $64,000, a credit to Merchandise Inventory for $1280, and a credit to Cash for $62,720 O a debit to Accounts Payable for $64,000, a credit to Cash for $1280, and a credit to Merchandise Inventory for $62,720 a debit to Accounts Payable for $64,000 and a credit to Cash for $64,000 Quoction 4 of 38
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