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

Question

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.

a.

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

Credit: Cash (-A)                                             $43,000

b.

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

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

c.

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

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

d.

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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