On February 1, Crown Company purchased $2,000 of merchandise, terms 2/10, n/30. Crown uses the gross method of recording purchases. Payment of the accounts payable was made on February 26. Which of the following journal entries is appropriate for the February 26 transaction? O Debit Accounts Payable for 1,960, Debit Purchases Discounts Lost for 40, and Credit Cash for 2,000 O Debit Accounts Payable for 2,000, and Credit Cash for 2,000 O Debit Accounts Payable for 1,960, and Credit Cash for 1,960 O Debit Purchases for 2,000, and Credit Accounts Payable for 2,000
On February 1, Crown Company purchased $2,000 of merchandise, terms 2/10, n/30. Crown uses the gross method of recording purchases. Payment of the accounts payable was made on February 26. Which of the following journal entries is appropriate for the February 26 transaction? O Debit Accounts Payable for 1,960, Debit Purchases Discounts Lost for 40, and Credit Cash for 2,000 O Debit Accounts Payable for 2,000, and Credit Cash for 2,000 O Debit Accounts Payable for 1,960, and Credit Cash for 1,960 O Debit Purchases for 2,000, and Credit Accounts Payable for 2,000
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter5: Accounting Systems
Section: Chapter Questions
Problem 14E: Guardian Services Inc. had the following transactions during the month of April: a. Record the June...
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