Menu
support@businesspapershelp.com
+1(805) 568 7317

question farthington soccer supplies purchases merchandise from a supplier on credit 4279888

Question

Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 2/10, n/30 for $16,000. Assume the company uses a perpetual inventory system, and records purchases using the gross method. When recording the purchase transaction in its purchases journal, Farthington would enter:

Multiple Choice

$16,000 in the Accounts Payable Cr. column and $16,000 in the Inventory Dr. column.

$16,000 in the Accounts Payable Cr. column and $16,000 in the Supplies Dr. column.

$16,000 in the Inventory Dr. column, $15,680 in the Accounts Payable Cr. column, and $320 in the Purchase Discount Cr. column.

$15,680 in the Inventory Dr. column and $15,680 in the Accounts Payable Cr. column.

$16,000 in the Other Accounts Dr. column and $16,000 in the Inventory Cr. column.

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now