Dawn Company uses a perpetual inventory system made a purchase of merchandise on credit from Wagne Corporation on August 3 for $7000 terms 2/10 n/45. On August 10 Dawn makes the appropriate payment to Wagne. The entry on August 10 for Dawn Company is a. Accounts Payable 7 , 000 Cash 7 , 000 \begin{array}{lrr} ext {Accounts Payable } & 7,000\ ext { Cash } & & 7,000\\end{array} Accounts Payable Cash 7 , 000 7 , 000 b. Accounts Payable 6 , 860 Cash 6 , 860 \begin{array}{lrr} ext { Accounts Payable } & 6,860\ ext { Cash } & & 6,860\end{array} Accounts Payable Cash 6 , 860 6 , 860 c. Accounts Payable 7 , 000 Purchase Returns and Allowances 140 Cash 6 , 860 \begin{array}{lrr} ext {Accounts Payable } & 7,000\ ext { Purchase Returns and Allowances } & & 140\ ext {Cash } & & 6,860\end{array} Accounts Payable Purchase Returns and Allowances Cash 7 , 000 140 6 , 860 d. Accounts Payable 7 , 000 Inventory 140 Cash 6 , 860 \begin{array}{lrr} ext { Accounts Payable} & 7,000\ ext { Inventory } & & 140\ ext { Cash} & & 6,860\end{array} Accounts Payable Inventory Cash 7 , 000 140 6 , 860

Question

Dawn Company uses a perpetual inventory system made a purchase of merchandise on credit from Wagne Corporation on August 3 for $7000 terms 2/10 n/45. On August 10 Dawn makes the appropriate payment to Wagne. The entry on August 10 for Dawn Company is a. Accounts Payable  7 , 000  Cash  7 , 000 \begin{array}{lrr}  	ext {Accounts Payable  }  & 7,000\ 	ext { Cash }  & & 7,000\\end{array} Accounts Payable   Cash  ​ 7 , 000 ​ 7 , 000 ​ b.  Accounts Payable  6 , 860  Cash  6 , 860 \begin{array}{lrr}  	ext { Accounts Payable }  & 6,860\ 	ext { Cash }  & & 6,860\end{array}  Accounts Payable   Cash  ​ 6 , 860 ​ 6 , 860 ​ c. Accounts Payable  7 , 000  Purchase Returns and Allowances  140 Cash  6 , 860 \begin{array}{lrr}  	ext {Accounts Payable  }  & 7,000\ 	ext { Purchase Returns and Allowances }  & & 140\ 	ext {Cash  }  & & 6,860\end{array} Accounts Payable   Purchase Returns and Allowances  Cash  ​ 7 , 000 ​ 140 6 , 860 ​ d.  Accounts Payable 7 , 000  Inventory  140  Cash 6 , 860 \begin{array}{lrr}  	ext {  Accounts Payable}  & 7,000\ 	ext { Inventory }  & & 140\ 	ext {  Cash}  & & 6,860\end{array}  Accounts Payable  Inventory   Cash ​ 7 , 000 ​ 140 6 , 860 ​

Stephanie Contreras · Accepted Answer

Final Answer : D

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