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 O Debit Accounts Payable for 2,000, and Credit Cash for 2,000 O 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
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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
O 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
Transcribed Image Text: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 O 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
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