Queen Mattresses,Inc If Queen Mattresses,Inc $\begin{array}{lll}\text { Inventory } & 5,000 & \\\quad \text { Accounts Payable } & & 5,000 \\\end{array}$

Multiple Choice

Queen Mattresses,Inc.had the following transactions occur during May 20X3.Assume there is no beginning inventory. $$\begin{array} { l l } \text { May } 2 & \text { Inventory was purchaped on account for } \$ 5,000 , \text { termh } 2 / 10,n / 30 . \\\text { May } 3 & \text { Inventory coeting } \$ 1,000 \text { was returned. } \\\text { May } 9 & \text { Paid for the inventory } \\\text { May } 15 & \text { Inventory costing } \$ 2,200 \text { was sold on account for } \$ 3,800 \text {, terms } 3 / 10, \mathrm{n} / 45 \\\text { May } 31 & \text { Intoningentrieg are prepared for the month-end financial statemente. }\end{array}$$ If Queen Mattresses,Inc.were using the perpetual inventory system,what is the journal entry for May 2?

A) $\begin{array}{lll}\text { Inventory } & 5,000 & \\\quad \text { Accounts Payable } & & 5,000 \\\end{array}$

B) $\begin{array}{lccc}\text { Purchases } & 4,900& \\\quad \text { Accounts Payable } & & 4,900 \\\end{array}$

C) $\begin{array}{lccc}\text { Purchases } & 5,000 & \\\quad \text { Accounts Payable } & & 5,000 \\\end{array}$

D) $\begin{array}{lccc}\text { Inventory } & 4,900 & \\\text { Cash Discounts on Purchases } & 100& \\\quad \text { Accounts Payable } & & 5,000 \\\end{array}$

E) $\begin{array}{lccc}\text { Purchases } & 4,900& \\\text { Cash Discounts on Purchases } &100&\\\quad \text { Accounts Payable } & & 5,000 \\\end{array}$