On February 1, Crown Company purchased $2,000 of merchandise, terms 2/10, n/30. Crown uses the gross method of recording purchases. Payment of the accounts payable was made on February 26. Which of the following journal entries is appropriate for the February 26 transaction? O Debit Accounts Payable for 1,960, Debit Purchases Discounts Lost for 40, and Credit Cash for 2,000 Debit Accounts Payable for 2,000, and Credit Cash for 2,000 Debit Accounts Payable for 1,960, and Credit Cash for 1,960 O Debit Purchases for 2,000, and Credit Accounts Payable for 2.000

On February 1, Crown Company purchased $2,000 of merchandise, terms 2/10, n/30. Crown uses the gross method of recording purchases. Payment of the accounts payable was made on February 26. Which of the following journal entries is appropriate for the February 26 transaction? O Debit Accounts Payable for 1,960, Debit Purchases Discounts Lost for 40, and Credit Cash for 2,000 Debit Accounts Payable for 2,000, and Credit Cash for 2,000 Debit Accounts Payable for 1,960, and Credit Cash for 1,960 O Debit Purchases for 2,000, and Credit Accounts Payable for 2.000

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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