A Company That Uses the Perpetual Inventory System Purchases Inventory

Multiple Choice

A company that uses the perpetual inventory system purchases inventory for $60,000 on credit,with terms of 3/10,n/30.Which of the following is the journal entry to record the payment made within 3 days?

A) a debit to Accounts payable for $60,000,a credit to Inventory for $1800 and a credit to Cash for $58,200
B) a debit to Inventory for $1800,a debit to Accounts payable for $60,000 and a credit to Cash for $61,800
C) a debit to Accounts payable for $58,200,a debit to Inventory for $1800 and a credit to Cash for $60,000
D) a debit to Accounts payable for $61,800 ,a credit to Cash for $60,000 and a debit to Inventory for $1800