If your company, which uses the perpetual method, purchases inventory for $10,000 at 2/10 net 30, records
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If your company, which uses the perpetual method, purchases inventory for $10,000 at 2/10 net 30, records the purchase as shown below, and pays in full after the discount period, what should you do?
Merchandise Inventory $9,800 Accounts Payable $9,800
A. Debit Accounts Payable for $10,000
B. Debit Purchase Discounts Lost for $200
C. Credit Purchase Discounts Lost for $200
D. Credit Merchandise Inventory for $200
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