On September 12, Vander Company sold merchandise in the amount of $7000 to Jepson Company, with credit terms of 3/10, n/30. The cost of the items sold is $4600. Jepson uses the periodic inventory system and the gross method of accounting for purchases. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Jepson makes on September 18 is:
A.
| Cash | 6790? | |
| Purchases discounts | 210? | |
| Accounts payable | 7000? |
B.
| Cash | 6790? | |
| Accounts receivable | 6790? |
C.
| Accounts payable | 7000? | |
| Purchases discounts | 210? | |
| Cash | 6790? |
D.
| Purchases | 6790? | |
| Cash | 6790? |
E.
| Accounts payable | 7000? | |
| Merchandise inventory | 210? | |
| Cash | 6790? |
Answer: C
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