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