Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 1/10, net 30, for $11,700. Emma Co. prepaid the $820 shipping charge. Using the perpetual inventory method, which of the following entries will Isabella Co. make to record the payment for the merchandise if Isabella Co. pays within the discount period? Oa. Accounts Payable-Emma Co., debit $11,700; Freight In, debit $820; Cash, credit $12,520 Ob. Accounts Payable-Emma Co., debit $11,700; Cash, credit $11,700 Oc. Accounts Payable-Emma Co., debit $12,520; Merchandise Inventory, debit $117; Cash, credit $12,637 Od. Accounts Payable-Emma Co., debit $12,403; Cash, credit $12,403

Question
Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 1/10, net 30, for $11,700. Emma Co. prepaid the $820 shipping charge. Using the perpetual
inventory method, which of the following entries will Isabella Co. make to record the payment for the merchandise if Isabella Co. pays within the discount period?
Oa. Accounts Payable-Emma Co., debit $11,700; Freight In, debit $820; Cash, credit $12,520
Ob. Accounts Payable-Emma Co., debit $11,700; Cash, credit $11,700
Oc. Accounts Payable-Emma Co., debit $12,520; Merchandise Inventory, debit $117; Cash, credit $12,637
Od. Accounts Payable-Emma Co., debit $12,403; Cash, credit $12,403

Image Transcription

Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 1/10, net 30, for $11,700. Emma Co. prepaid the $820 shipping charge. Using the perpetual inventory method, which of the following entries will Isabella Co. make to record the payment for the merchandise if Isabella Co. pays within the discount period? Oa. Accounts Payable-Emma Co., debit $11,700; Freight In, debit $820; Cash, credit $12,520 Ob. Accounts Payable-Emma Co., debit $11,700; Cash, credit $11,700 Oc. Accounts Payable-Emma Co., debit $12,520; Merchandise Inventory, debit $117; Cash, credit $12,637 Od. Accounts Payable-Emma Co., debit $12,403; Cash, credit $12,403

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