A company purchased P10,000 of merchandise inventory from a vendor who offers credit terms of 2/10 n/30. The company uses the net cost method of recording purchases of merchandise. The company paid the vendor 30 days after receiving the invoice. The journal entry to record the payment would include which of the following? a. A credit to Cash for 10,000. debit to account payable 9,800 b. A debit to Accounts Payable for 10,000, debit merchandise inventory 9800 c. A debit to Purchase Discounts for 200, credit to cash 9,800 d. a debit to account payable 10,000, credit purchase discount 200

A company purchased P10,000 of merchandise inventory from a vendor who offers credit terms of 2/10 n/30. The company uses the net cost method of recording purchases of merchandise. The company paid the vendor 30 days after receiving the invoice. The journal entry to record the payment would include which of the following? a. A credit to Cash for 10,000. debit to account payable 9,800 b. A debit to Accounts Payable for 10,000, debit merchandise inventory 9800 c. A debit to Purchase Discounts for 200, credit to cash 9,800 d. a debit to account payable 10,000, credit purchase discount 200

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 11MC: A retailer returns $400 worth of inventory to a manufacturer and receives a full refund. What...

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