The entry to record payment of a $1,500 purchase within the 2 percent discount period would include a(n)
A) decrease to Accounts Payable for $1,470.
B) increase to Purchases Discounts for $30.
C) increase to Accounts Payable for $1,500.
D) increase to Cash for $1,500.

Question

Quizplus · Accepted Answer

The entry would include an increase to Purchases Discounts for $30, as the discount is 2% of $1,500, which equals $30.

The Entry to Record Payment of a $1,500 Purchase Within