Purchases were made on account on august 5th in the amount of $100,000 with terms of 1/10, n/30. the bill was paid on august 14th. in a perpetual inventory system the journal entry to record the payment would include
a: a credit to accounts receivable for $100,000.
b: a debit to accounts payable for $99,000.
c: a credit to cash for $100,000.
d: a credit to inventory for $1,000.

In a perpetual inventory system the journal entry to record the payment would include

a credit to Inventory for $1,000

Explanation:

One percent of the purchases ($100,000 x .01 = $1,000) represents a discount, which will result in a credit to the Inventory account .

Purchases_100000_5/aug

paid14/aug

Terms 1/10 n/30  

Purchases100000  

discount %      1%  

Discount1000  

net payment   99000  

answer; intensive use of a sales force and is relatively costly;

1. avoid them

2. a talk with them

3. ask someone you trust

4. ignore

5. call police