The entry to record payment of a $3,000 purchase within the 2 percent discount period would include a(n)
A)decrease to Accounts Payable for $2,940.
B)increase to Purchases Discounts for $60.
C)increase to Accounts Payable for $3,000.
D)increase to Cash for $3,000.

Question

Quizplus · Accepted Answer

The purchase discount is calculated as 2% of $3,000, which is $60. Therefore, the entry would include an increase to Purchases Discounts for $60.

The Entry to Record Payment of a $3,000 Purchase Within