On July 1, Darin Company sold inventory costing $5,000 to Dee Company for $6,000, terms 3/10, n/30. Both companies use the perpetual inventory system. Dee Company pays the invoice on July 8 and takes the appropriate discount. What journal entry will be recorded by Dee Company on July 8?

A. Debit Accounts Payable and credit Cash for $6,000
B. Debit Accounts Payable for $5,820, credit Inventory for $180, and credit Cash for $6,000
C. Debit Cost of Goods Sold and credit Cash for $5,000
D. Debit Accounts Payable for $6,000, credit Cash for $5,820, and credit Inventory for $180


Answer: D

Business

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