ARIBA purchased merchandise from his supplier with list price of P50,000 and invoice price of P35,000. The purchase is subject to 2% discount if paid within 10 days. The entry to record payment within the discount period is:

a. DR. Accounts payable 34,300 CR. Cash 34,300

b. Accounts payable 49,000 Cash 49,000

c. DR. Accounts payable 50,000 CR. Purchase discount 1,000 CR. Cash 49,000

d. DR. Accounts payable 35,000 CR. Purchase discount 700 CR. Cash 34,300

Answer rating: 100% (QA)

24 Date Account title Explanation Debit Credit Account payable 35000 Purchase Discount ... View the full answer