Multiple Choice
On June 1,Addison Company purchased $5,000 of inventory on account from Garrison Company.Garrison offers a 3% discount if payment is received within 15 days.Addison records the purchase using the gross method and the perpetual inventory system.The journal entry on June 1 by Addison Company includes ________.
A) a debit to Inventory for $4,850
B) a credit to Accounts Payable for $4,850
C) a debit to Inventory for $5,000
D) a credit to Cash for $5,000
Correct Answer:
Verified
Correct Answer:
Verified
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