Chancellor Company Purchased Merchandize Worth $900 on Credit,terms N/30 $\begin{array}{llr} \text { Accounts Receivable} &900\\ \text { Purchases } &&900\\\end{array}$

Multiple Choice

Chancellor Company purchased merchandize worth $900 on credit,terms n/30.What is the required journal entry to record the transaction under the perpetual inventory system?

A)
$\begin{array}{llr} \text { Accounts Receivable} &900\\ \text { Purchases } &&900\\\end{array}$

B)
$\begin{array}{llr} \text { Purchases } &900\\ \text { Merchandize Inventory } &&900\\\end{array}$

C)
$\begin{array}{llr} \text { Merchandize Inventory} & 900\\ \text {Accounts Pavable } && 900\\\end{array}$

D)
$\begin{array} { lc c } \text { Accounts Payable } & 900 \\\quad \text { Merchandize Inventory } & & 900\end{array}$