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Question


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?



A.

debit Purchases for $ 1400


$1,400 and credit Accounts Payable for $ 1400


$1,400

B.

debit Accounts Receivable for $ 2800


$2,800 and credit Purchases for $ 2800


$2,800

C.

debit Purchases for $ 2800


$2,800 and credit Cash for $ 2800


$2,800

D.

debit Inventory for $ 1400


$1,400 and credit Accounts Payable for $ 1400

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