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Grogan Company purchases inventory on

account with a cost of $ 1 comma 400

$1,400 and a retail price of $ 2800

$2,800. Grogan Company uses the perpetual inventory method. What journal entry is required on the date of​ purchase?


debit Purchases for $ 1400

$1,400 and credit Accounts Payable for $ 1400



debit Accounts Receivable for $ 2800

$2,800 and credit Purchases for $ 2800



debit Purchases for $ 2800

$2,800 and credit Cash for $ 2800



debit Inventory for $ 1400

$1,400 and credit Accounts Payable for $ 1400

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