Exhibit 7-2 Edwards Co. purchased raw materials with a cost of $95,000 on March 2, 2014. Credit terms of 3/20, n/60 applied.
-Refer to Exhibit 7-2. If Edwards uses the net method and pays for the purchase on March 18, 2014, what amount is recorded in the Purchase Discounts Taken account?
A) $0
B) $2,850
C) $5,000
D) $3,000

Question

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The Answer of Exhibit 7-2 Edwards Co. purchased raw materials with a cost of $95,000 on March 2, 2014. Credit terms of 3/20, n/60 applied.
-Refer to Exhibit 7-2. If Edwards uses the net method and pays for the purchase on March 18, 2014, what amount is recorded in the Purchase Discounts Taken account?
A) $0
B) $2,850
C) $5,000
D) $3,000