A company using the gross method of recording purchases and a perpetual inventory system failed to take advantage of a discount available. When it pays the amount of the invoice at the end of the credit period, the journal entry will include a debit to:
A)Merchandise Inventory.
B)Sales Discounts.
C)Accounts Payable.
D)Cash.
E)Purchase Discounts.

Question

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The Answer of A company using the gross method of recording purchases and a perpetual inventory system failed to take advantage of a discount available. When it pays the amount of the invoice at the end of the credit period, the journal entry will include a debit to:
A)Merchandise Inventory.
B)Sales Discounts.
C)Accounts Payable.
D)Cash.
E)Purchase Discounts.

A Company Using the Gross Method of Recording Purchases and a Perpetual