A Merchandiser Purchases Inventory on Account Under a Perpetual Inventory

Multiple Choice

A merchandiser purchases inventory on account under a perpetual inventory system with terms of 2/10 n/30. The merchandiser would:

A) credit Inventory on date of payment if the discount is taken.
B) credit Inventory on date of payment if the discount is not taken.
C) credit Purchases Discounts on date of purchase if the discount is taken.
D) debit Purchases Discounts on date of purchase if the discount is not taken.