On July 10,a Hardware Retailer Purchased Merchandise Inventory on Account

Multiple Choice

On July 10,a hardware retailer purchased merchandise inventory on account for $1,700.The company plans to pay $900 the following week and the remaining amount the week after.Which of the following is the correct entry to record this transaction in a purchases journal? Assume a perpetual inventory system is used.

A) $850 will be recorded in the Accounts Payable CR and Merchandise Inventory CR column.
B) $2,600 will be recorded in the Accounts Payable DR and Merchandise Inventory DR column.
C) $1,700 will be recorded in the Merchandise Inventory CR and Accounts Payable DR column.
D) $1,700 will be recorded in the Accounts Payable CR and Merchandise Inventory DR column.