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Satoor Inc

Question 197

Multiple Choice

Satoor Inc.Satoor Inc. uses a periodic inventory system. It purchased merchandise from Taye Company on July 7, for $15,000. The credit terms were 1/10, n/30. The goods were shipped F.O.B. shipping point on July 7. Satoor Inc. received the merchandise on July 10 and paid the amount due on July 15.
-Refer to the information provided in the figure Satoor Inc.When the buyer records the payment on July 15,what will its journal entry include?


A) decrease of $15,000 to purchases
B) increase of $14,850 to inventory
C) decrease of $15,000 to cash
D) decrease of $15,000 to accounts payable

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