Question: 5. A company records its purchases using the net method. On August 1, it purchases merchandise on account for $6,000 with terms of 2/10,

5. A company records its purchases using the net method. On August

5. A company records its purchases using the net method. On August 1, it purchases merchandise on account for $6,000 with terms of 2/10, n/30. The August 1 journal entry to record this transaction includes a Answer a. Debit to Merchandise Inventory for $6,000. b. Debit to Merchandise Inventory for $5,880. c. Debit to Merchandise Inventory for $120. d. Debit to Accounts Payable for $5,880. e. Credit to Accounts Payable for $6,000

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