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/bhcconline.mrooms.net/mod/quiz/attempt.php?attempt-424391&cmid; 738107 Distance Ed 1 Prin of Accounting I (ACC-101-WB) on open account. Which of the following is the correct journal entry to record this purchase? A company uses the perpetual inventory system and makes a purchase of inventory Select one O a Debit the asset Office Supplies and a credit to Cash 0 b. Debt to Merchandise Inventory and a credt to Accounts Payable O c Debit to Merchandise Inventory and a credit to Cash d Debit to Sales Returns and Allowances and a credit to Cost of Goods Sold e. None of the above The buyer received an invoice fromt he seller for merchandise with a list price of $700 and credit terms of 2/10, n/45 The term, 2/10, in the creit terms is which of the following? Seiect one a The discount percentage and the number of days to the end of the month b The discount percentage and the number of days in the discount period C Only the discout period d Only the discount percentage e None of the above FOB Shipping Point means that the

Solution

The journal Entry is following

Merchandise Inventory. Dr.

To Account Payable

So option But is correct

The meaning of 2/10 is showing discount so option C is correct , if it add n45 than its show discount rate with payment period