A Company Using the Perpetual Inventory System Purchased Inventory Worth

Multiple Choice

A company using the perpetual inventory system purchased inventory worth $510,000 on credit with terms of credit being 3/15,n/45.Defective inventory of $80,000 was returned 2 days later and the accounts were appropriately adjusted.If the company paid the invoice 20 days later,the journal entry to record the payment would be:

A) $430,000 debit to Accounts payable and $430,000 credit to Cash.
B) $510,000 debit to Accounts payable,$497,100 credit to Cash and $12,900 credit to Inventory.
C) $442,900 debit to Accounts payable,$12,900 credit to Inventory and $430,000 credit to Cash.
D) $510,000 debit to Accounts payable and $510,000 credit to Cash.