uestion 7 A company purchased inventory for $4000 from a vendor on account, FOB shipping point, with terms of 2/15, n/30. The vendor paid $200 cash for freight on the company's behalf, which was not included in the original entry for the purchase. The entry to record the payment of the invoice within 15 days of the invoice date by the purchaser would include - (Assume a perpetual inventory system.) O a debit to Accounts Payable for $4000, a credit to Merchandise Inventory for $80, and a credit to Cash for $3920 O a debit to Accounts Payable for $4000, a debit to Merchandise Inventory for $120, anda credit to Cash for $4120 O a debit to Accounts Payable for $3920 and a credit to Cash for $3920 O a debit to Accounts Payable for $3920, a debit to Merchandise Inventory for $80, and a credit to Cash for $4000

uestion 7 A company purchased inventory for $4000 from a vendor on account, FOB shipping point, with terms of 2/15, n/30. The vendor paid $200 cash for freight on the company's behalf, which was not included in the original entry for the purchase. The entry to record the payment of the invoice within 15 days of the invoice date by the purchaser would include - (Assume a perpetual inventory system.) O a debit to Accounts Payable for $4000, a credit to Merchandise Inventory for $80, and a credit to Cash for $3920 O a debit to Accounts Payable for $4000, a debit to Merchandise Inventory for $120, anda credit to Cash for $4120 O a debit to Accounts Payable for $3920 and a credit to Cash for $3920 O a debit to Accounts Payable for $3920, a debit to Merchandise Inventory for $80, and a credit to Cash for $4000

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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