Reference no: EM132699868
Problem 1: On September 12, Vander Company sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Jepson uses the periodic inventory system and the gross method of accounting for purchases. The journal entry that Jepson will make on September 12 is:
Multiple Choice
Option 1: Merchandise inventory5,800 Accounts payable 5,800
Option 2: Purchases5,800 Accounts receivable 5,800
Option 3: Accounts payable4,000 Merchandise inventory 4,000
Option 4: Purchases4,000 Accounts receivable 4,000
Option 5: Purchases5,800 Accounts payable 5,800