Question

Carrie Company sold merchandise with an invoice price of $1,900to Underwood, Inc., with terms of 3/10, n/30. Which of thefollowing is the correct entry to record the payment by UnderwoodInc., within the 10 days if the company uses the periodic inventorysystem and the gross method to record purchases?

  Accountspayable1,900

       Cash1,900

  Cash1,843

  Sales discount57

       Accounts receivable1,900

  Accountspayable1,900

       Cash1,843

       Purchases discounts57

  Purchases1,843

       Cash1,843