Reference no: EM133016814

Question - A company using the perpetual inventory system purchased inventory worth $14,000 on account with credit terms of 3?/15, ?n/30. Defective inventory was? received, but instead of a? return, an allowance of $1,200 is given. The allowance is granted before the invoice is paid. What the journal entry to record the payment after the allowance and within the discount period?

A. $384 debit to Merchandise Inventory and $12,416 debit to Accounts? Payable; $12,800 credit to Cash

B. $12,800 debit to Accounts? Payable; $12,416 credit to Cash and $384 credit to Merchandise Inventory

C. $12,800 debit to Cash and $12,800 credit to Accounts Payable

D. $12,800 debit to Accounts Payable and $12,800 credit to Cash