A company purchased inventory for $100,000 on account and re

A company purchased inventory for $100,000 on account and recorded it as follows:

Merchandise Inventory 100,000
Accounts Payable 100,000

The vendor’s invoice showed terms of 3/10, net 30

Give the journal entry for the payment of the invoice seven days after the invoice date, assuming that the vendor uses the perpetual inventory system.
What will be an ideal response

ANSWER

Accounts Payable 100,000
Merchandise Inventory 3,000
Cash 97,000