A company uses the perpetual inventory system and recorded the following entry: Accounts Payable2,500 Merchandise Inventory 50Cash 2,450This entry reflects a:

A. Payment of the account payable less a 2% cash discount taken.
B. Sale of merchandise on credit.
C. Return of merchandise.
D. Purchase of merchandise on credit.
E. Payment of the account payable less a 1% cash discount taken.


Answer: A

Business

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