Recording Payment in Perpetual Inventory System: Cash, Accounts

LOL MUSIC Store uses the perpetual inventory system to account for its merchandise. On November 1?, it purchased $1000 of merchandise with terms 0 2.-'5,n.-'60. If payment is made on November 21, demonstrate the requiredjournal entryto record the payment by selecting cull ofthe correct actions below. (Check all that apply.) Credit Cash $980. DebitAccounts Payable $1000. Credit Cash $1,000. Reason: Credit Cash for $1,000-$20 = $980. Credit Accounts Payable $1,000. Reason: Debit Accounts Payable. Credit Purchase Discounts $20. Reason: Credit Merchandise Inventory for the discount. Credit Merchandise Inventory $20. Debit Merchandise Inventory $20. Reason: Credit Merchandise Inventory forthe $20 discount. Correct Answer Credit Cash $980. DebitAccounts Payable $1000. Credit Merchandise Inventory $20. Q Feedback