Morgan, Inc. uses a perpetual inventory system and the net method of recording purchases. On May 12, a merchandise purchase of $20,200 was made on credit, 2/10, n/30. The journal entry to record this purchase is:
A.
| Purchases | 20,200? | |
| Accounts Payable | 20,200? |
B.
| Purchases | 19,796? | |
| Accounts Payable | 19,796? |
C.
| Merchandise Inventory | 19,796? | |
| Accounts Payable | 19,796? |
D.
| Accounts Payable | 20,200? | |
| Merchandise Inventory | 20,200? |
E.
| Merchandise Inventory | 20,200? | |
| Accounts Payable | 20,200? |
Answer: C
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