A Company Using the Perpetual Inventory System Purchased Inventory Worth

Multiple Choice

A company using the perpetual inventory system purchased inventory worth $540,000 on account with credit terms of 2/15,n/45.Defective inventory of $40,000 was returned 2 days later,and the accounts were appropriately adjusted.If the company paid the invoice 20 days later,the journal entry to record the payment would be ________.

A) $540,000 debit to Accounts Payable and $540,000 credit to Cash
B) $500,000 debit to Accounts Payable and $500,000 credit to Cash
C) $540,000 debit to Accounts Payable,$530,000 credit to Cash,and $10,000 credit to Merchandise Inventory
D) $530,000 debit to Accounts Payable,$10,000 credit to Merchandise Inventory,and $500,000 credit to Cash