Dude Duds, Inc. is a clothing retailer specializing in affordable family apparel. Prepare journal entries...
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Dude Duds, Inc. is a clothing retailer specializing in affordable family apparel. Prepare journal entries and related adjusting entries (if any) for the transaction below for the first quarter ending March 31 of the current year. Paid $5,130,579 of merchandise invoices previously acquired on account. The company deducted a 2% discount for prompt payment and treated the discount as a reduction in the acquisition cost of the inventory. Select one: a. Dr. Accounts payable $5,130,579; Cr. Cash $5,027,967; Cr. Inventory $102,612 O b. No journal entry or adjusting entry required c. Dr. Cash $5,027,967; Dr. Inventory $102,612; Cr. Accounts payable $5,130,579; O d. Dr. Accounts payable $5,130,579; Cr. Cash $5,130,579 e. Dr. Cash $5,130,579; Cr. Accounts payable $5,130,579
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