On June 20, Ying Company Purchased Goods from Chee-Chow Company

Multiple Choice

On June 20, Ying Company purchased goods from Chee-Chow Company for HK$30,000, terms 2\10, n\30.The invoice was paid on June 27.The company uses a perpetual inventory system and records purchases gross.The June 27 journal entry to record payment of the account would include:

A) a credit to Cash for HK$30,000.
B) a credit to Purchases Discounts for HK$600.
C) a debit to Accounts Payable for HK$29,400.
D) a credit to Inventory for HK$600.