Farthington Soccer Supplies Purchases Merchandise from a Supplier on Credit

Multiple Choice

Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 2/10, n/30 for $15,300. Assume the company uses a perpetual inventory system, and records purchases using the gross method. When recording the purchase transaction in its purchases journal, Farthington would enter:

A) $14,994 in the Inventory Dr. column and $14,994 in the Accounts Payable Cr. column.
B) $15,300 in the Accounts Payable Cr. column and $15,300 in the Inventory Dr. column.
C) $15,300 in the Accounts Payable Cr. column and $15,300 in the Supplies Dr. column.
D) $15,300 in the Other Accounts Dr. column and $15,000 in the Inventory Cr. column.
E) $15,300 in the Inventory Dr. column, $14,994 in the Accounts Payable Cr. column, and $306 in the Purchase Discount Cr. column.