On June 1, Addison Company purchased $ 10,000 of inventory on account from Garrison Company. Garrison offers a 4 % discount if payment is received within 15 days. Addison records the purchase using the gross method and the perpetual inventory system. The journal entry on June 1 by Addison Company includes :
a. a debit to Inventory for $9,600
b. a credit to Cash for $10,000
c. a debit to Inventory for $10,000
d. a credit to Accounts Payable for $9,600
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Home » Business » On June 1, Addison Company purchased $ 10,000 of inventory on account from Garrison Company. Garrison offers a 4 % discount if payment is received within 15 days. Addison records the purchase using the gross method and the perpetual inventory system.