On September 12, Vander Company sold merchandise in the amount of $8600 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $5400. Jepson uses the periodic inventory system and the gross method of accounting for purchases. The journal entry that Jepson will make on September 12 is:
A.
| Purchases | 5400? | |
| Accounts receivable | 5400? |
B.
| Accounts payable | 5400? | |
| Merchandise inventory | 5400? |
C.
| Merchandise inventory | 8600? | |
| Accounts payable | 8600? |
D.
| Purchases | 8600? | |
| Accounts receivable | 8600? |
E.
| Purchases | 8600? | |
| Accounts payable | 8600? |
Answer: E
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