Multiple Choice
On March 15,20A,Jack Company purchased $5,000 of merchandise on credit subject to terms 2/10,n/20.Jack records its purchases using the gross amount.The periodic inventory system is used.If Jack pays for these goods on March 30,the entry made to record the payment should include which of the following?
A) Credit of $100 to Purchase discounts.
B) Debit of $4,900 to Trade payables.
C) Debit of $5,000 to Trade payables.
D) Credit of $4,900 to cash.
Correct Answer:
Verified
Correct Answer:
Verified
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