Grogan Company Purchases Inventory on Account with a Cost of $1,700

Multiple Choice

Grogan Company purchases inventory on account with a cost of $1,700 and a retail price of $3,400.Grogan Company uses the perpetual inventory method.What journal entry is required on the date of purchase?

A) debit Purchases for $1,700 and credit Accounts Payable for $1,700
B) debit Purchases for $3,400 and credit Cash for $3,400
C) debit Inventory for $1,700 and credit Accounts Payable for $1,700
D) debit Accounts Receivable for $3,400 and credit Purchases for $3,400