Record the purchases using the gross amount


On March 15, 2009, Ryan Company purchased $10,000 of merchandise on credit subject to terms, 2/10, n/30. Ryan records its purchases using the gross amount. The periodic inventory system is used. If Ryan pays for these goods on March 30, the entry made to record the payment should include:

A) $200 credit to Purchase discounts.

B) debit of $9,800 to Accounts payable.

C) debit of $10,000 to Accounts payable.

D) $9,800 credit to cash.

E) Two of the above are correct.

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Accounting Basics: Record the purchases using the gross amount
Reference No:- TGS096895

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