Reference no: EM132695477

Problem 1: A retailer who uses a perpetual inventory system purchased $8,000 of merchandise on credit. The credit terms were 2/10, n/30, FOB destination. The freight costs were $130. What was the journal entry for the purchaser to record this transaction?

A) Merchandise Inventory, debit, $8,000; Freight-In, debit, $130; Accounts Payable, credit, $8,130

B) Merchandise Inventory, debit, $8,130; Accounts Payable, credit, $8,130

C) Merchandise Inventory, debit, $8,000; Accounts Payable, credit, $8,000

D) Merchandise Inventory, debit, $7,870; Freight-In, debit, $130; Accounts Payable, credit, $8,000

E) None of the above