A purchase on account with an invoice price of $750 has been made. The entry to record the payment after the 2 percent discount period would include a(n)
A) decrease to Accounts Payable for $750.
B) decrease to Purchases Discounts for $15.
C) increase to Accounts Payable for $735.
D) decrease to Cash for $735.

Question

Quizplus · Accepted Answer

The entry to record the payment after the discount period would involve a decrease to Accounts Payable for the full invoice amount of $750, as the discount is no longer applicable.

A Purchase on Account with an Invoice Price of $750