Recording Payment for Merchandise Purchase: Accounts Payable,

Your Answer- 4) On Dec. I Toys R Fun purchased $1,000 of merchandise with terms of 2f10,nf30. It payment is made on December 16, demonstrate the required journal entry for Toys R Fun to record the payment underthe perpetual inventory system. Debit Accounts Payable $1,000; credit Cash $980; credit Merchandise Inventory $20. Debit Accounts Payable $1,000; credit Cash $1,000: credit Purchase Discounts $20. Reason: Credit Merchandise Inventory. Debit Accounts Payable $1,000; credit Cash $1,000. Reason: You forgot to record the discount of $20. Debit Merchandise Inventory $20; debit Cash $980; credit Accounts Payable $1,000. Reason: Your debits and credits are reversed. Correct Answer Debit Accounts Payable $1,000; credit Cash $980; credit Merchandise Inventory $20.