Grant's Hardware Bought $12,000 of Merchandise, Terms 1/10, N/30

Multiple Choice

Grant's Hardware bought $12,000 of merchandise, terms 1/10, n/30. The company uses the periodic inventory system and the voucher system. The journal entry to record the transaction under the net approach method would be to:

A) debit Purchases $11,880; credit Accounts Payable $11,880.
B) debit Purchases $11,880; credit Vouchers Payable $11,880.
C) debit Purchases $12,000; credit Vouchers Payable $11,880; credit Discounts Lost $120.
D) debit Purchases $12,000; credit Cash $12,000.