A Company Uses the Perpetual Inventory System and Recorded the Following

Multiple Choice

A company uses the perpetual inventory system and recorded the following entry:
$$\begin{array} { | l | r | r | } \hline \text { Accounts Payable } & 2,500 & \\\hline \text { Merchandise Inventory } & & 50 \\\hline \text { Cash } & & 2,450 \\\hline\end{array}$$
This entry reflects a:

A) Purchase
B) Return
C) Sale
D) Payment of the account payable and recognition of a cash discount taken
E) Purchase and recognition of a cash discount taken