xyz-company-purchased-inventory-worth-2000-with-terms-210-net-30-and-paid-within

Question

XYZ Company purchased inventory worth $2,000 with terms 2.10 net 30 and paid within the discount period. What is the journal entry for the payment?

Accepted Answer

Debit Accounts Payable $$2,000; Credit Cash 1$$,960; Credit Inventory $40

Answer

Debit Inventory $$2,000; Credit Accounts Payable 2$$,000

Answer

Debit Cash $$1,960; Credit Accounts Payable 2$$,000; Credit Inventory $40

Answer

Debit Accounts Payable $$2,000; Credit Cash 2$$,000

XYZ Company purchased inventory worth \$2,000 with terms 2.10 net 30 and paid within the discount period. What is the journal entry for the payment?