Tedder Uses a Periodic Inventory System

Multiple Choice

Tedder uses a periodic inventory system. At the end of January, 20 units were on hand. The following additional information is available for the month of January:

-Refer to the information provided for Tedder Co. Which of the following entries correctly records the purchase assuming the units were acquired on credit under terms of 2/10, n/30?

A) Inventory 270.00 Cash 270.00
B) Inventory 270.00Accounts payable 270.00
C) Purchases 264.60Purchase discounts 5.40Accounts payable 270.00
D) Purchases 270.00Accounts payable 270.00