LOL Music Store uses the periodic inventory system to account for its merchandise. On November 17, it purchased $1,000 of merchandise

Question

LOL Music Store uses the periodic inventory system to account for its merchandise. On November 17, it purchased $1,000 of merchandise with terms of 2/5,n/60. If payment is made on November 21, demonstrate the required journal entry to record the payment by selecting a/I of the correct actions below. (Check all that apply.) a. Credit Accounts Payable $1,000. b. Credit Cash $980. c. Credit Purchase Discounts $20. d. Credit Cash $1,000. e. Debit Accounts Payable $1,000. f. Debit Purchase Discounts $20. g. Credit Merchandise Inventory $20.

Saul Waters · Accepted Answer

i cant answer it on here sryExplanation:

Saul Waters · Answer

The answer is all but the keyboard,ballets,and chamber musicExplanation:

Saul Waters · Answer

The answers are:Dr accounts payable 1,000Cr cash 980Cr merchandise inventory 20Explanation:Since accounts payable is a liability, when it decreases, it should be debited. Since the merchandise was paid (less debt), then the company’s liabilities decrease. Since cash is an asset, when an asset decreases, it should be credited. LOL Music Store paid its debt in cash, therefore decreasing its cash account. Since the purchase discount reduces the value of the inventory and inventory is an asset, when an asset decreases, it should be credited.

Saul Waters · Answer

Ok…?The document isn’t loading 🙁Im sure its great though…Have a great night.You are worthy 🙂

Ms. Mara Collier

LOL Music Store uses the periodic inventory system to account for its merchandise. On November 17, it purchased $1,000 of merchandise

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