Jenny Cosmetics Bought $1,000 Worth of Merchandise from Glorial Company

Multiple Choice

Jenny Cosmetics bought $1,000 worth of merchandise from Glorial Company on account on June 16, with terms n/30. Glorial Company agreed to accept a 30-day, 8 percent, $1,000 note in settlement of the account. Which of the following journal entries records the original purchase in general journal form on Jenny's books?

A) Debit Purchase by $1,000; credit Notes Payable by $1,000
B) Debit Purchase by $1,006.67; credit Accounts Payable, Glorial Company by $1,006.67
C) Debit Purchase by $1,000; credit Accounts Payable, Glorial Company by $1,000
D) Debit Purchase by $1,006.67; credit Notes Payable by $1,006.67