On July 10, a hardware retailer purchased merchandise inventory on account for $1,800. The company plans to pay $1,600 the following week and the remaining amount the week after. Which of the following is the correct entry to record the July 10 transaction in a purchases journal? Assume a perpetual inventory system is used.
A) $1,600 will be recorded in the Accounts Payable CR and Merchandise Inventory CR columns.
B) $3,400 will be recorded in the Accounts Payable DR and Merchandise Inventory DR columns.
C) $1,800 will be recorded in the Merchandise Inventory CR and Accounts Payable DR columns.
D) $1,800 will be recorded in the Accounts Payable CR and Merchandise Inventory DR columns.
D) $1,800 will be recorded in the Accounts Payable CR and Merchandise Inventory DR columns.
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