A company using the perpetual inventory system purchased inventory worth $130,000 on account with credit...
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Accounting
A company using the perpetual inventory system purchased inventory worth $130,000 on account with credit terms of 4/15, n/30. Defective inventory was received, but instead of a return, an allowance of $700 is given. The allowance is before the invoice is paid. The journal entry to record the payment after the allowance and within the discount period would be A. $129,300 debit to Accounts Payable and $129,300 credit to Cash B. $5,172 debit to Merchandise Inventory and $124,128 debit to Accounts Payable; $129,300 credit to Cash C. $129,300 debit to Cash and $129,300 credit to Accounts Payable D. $129,300 debit to Accounts Payable; $124,128 credit to Cash and $5,172 credit to Merchandise Inventory
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