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question on april 1 2015 spencer ltd purchased 43 000 of merchandise inventory from 4278660


On April 1, 2015, Spencer Ltd. Purchased $43,000 of merchandise inventory from a wholesale distributor. Spencer Ltd. Intends to offer these items for sale to its customers. The merchandise was received on that date and would be paid for at the end of April 2015. Choose the correct entry (if any) to be made on April 1, 2015.


Debit: Merchandise Inventory (+A)                     $43,000

Credit: Cash (-A)                                             $43,000


Debit: Cost of Goods Sold Expense (+E, -SE)       $43,000

Credit: Accounts Payable (+L)                           $43,000


Debit: Merchandise Inventory (+A)                    $43,000

Credit: Accounts Payable (+L)                           $43,000


No entry should be made at this time.

** Please explain why each answer is correct/incorrect. There is only 1 right answer


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