A Company Records Purchases Using the Net Method

Multiple Choice

A company records purchases using the net method. On February 1, they purchased merchandise inventory on account for $8,300 with terms of 1/10, n/30. The February 1 journal entry to record this transaction would include a:

A) Debit to Merchandise Inventory of $8,300.
B) Debit to Merchandise Inventory of $8,217.
C) Debit to Merchandise Inventory of $83.
D) Credit to Merchandise Inventory of $83.
E) Credit to Accounts Payable of $8,300.