Spears Company Uses the Periodic Inventory Method

Multiple Choice

Spears Company uses the periodic inventory method.On April 15,Spears Company purchased merchandise inventory from Zing Inc.with an invoice price of $70,000 and credit terms of 2/10,n/30.How would Spears Company record this transaction?

A) Debit Merchandise Inventory for $70,000 and credit Cash for $70,000.
B) Debit Merchandise Inventory for $70,000 and credit Accounts Payable for $70,000.
C) Debit Merchandise Inventory for $68,600 and credit Accounts Payable for $68,600.
D) Debit Purchases for $70,000 and credit Accounts Payable for $70,000.
E) Debit Purchases for $68,600 and credit Accounts Payable for $68,600.