what-is-the-journal-entry-for-recording-a-purchase-of-5000-with-terms-210-net-30

Question

What is the journal entry for recording a purchase of $5,000 with terms 2.10 net 30, paid within the discount period?

Accepted Answer

Debit Accounts Payable $5,000; Credit Cash $4,900; Credit Inventory $100

Answer

Debit Inventory $4,900; Credit Accounts Payable $4,900

Answer

Debit Inventory $5,000; Credit Accounts Payable $5,000

Answer

Debit Cash $5,000; Credit Accounts Payable $5,000

What is the journal entry for recording a purchase of \$5,000 with terms 2.10 net 30, paid within the discount period?