Buffet Company Uses the Periodic Inventory Method

Multiple Choice

Buffet Company uses the periodic inventory method.On April 15,Buffet Company purchased merchandise inventory from Guacos Inc.with an invoice price of $70,000 and credit terms of 2/10,n/30.Buffet Company paid Guacos on April 25.How would Buffet Company record this transaction?

A) Debit Accounts Payable for $70,000,credit Purchase Discounts for $1,400,and credit Cash for $68,600.
B) Debit Accounts Payable for $70,000,credit Merchandise Inventory for $1,400,and credit Cash for $68,600.
C) Debit Accounts Payable for $68,600,debit Purchase Discounts for $1,400,and credit Cash for $70,000.
D) Debit Accounts Payable for $68,600 and credit Cash for $68,600.
E) Debit Accounts Payable for $70,000 and credit Cash for $70,000.