A company that uses the perpetual inventory system purchased inventory for $900,000 on account with terms of 4/7, n/20. Which of the following correctly records the payment made 15 days after the date of invoice?
A)
Cash 900,000
Accounts Payable 900,000
B)
Accounts Payable 900,000
Merchandise Inventory 900,000
C)
Accounts Payable 900,000
Cash 900,000
D)
Accounts Payable 900,000
Merchandise Inventory 36,000
Cash 864,000
C
Business
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