Shelton Brothers, Inc.
Shelton Brothers uses a periodic inventory system. It purchased merchandise from BXP on account Inc. on July 7, 2012, for $15,000. The credit terms were 1/10, n/30. Shelton paid the amount due on July 15.
-Refer to the information provided for Shelton Brothers, Inc. The effect of recording the payment on July 15th will include:

Question

Shelton Brothers, Inc. 
Shelton Brothers uses a periodic inventory system. It purchased merchandise from BXP on account Inc. on July 7, 2012, for $15,000. The credit terms were 1/10, n/30. Shelton paid the amount due on July 15.
-Refer to the information provided for Shelton Brothers, Inc. The effect of recording the payment on July 15th will include:

Quizplus · Accepted Answer

Recording the payment on July 15th will result in a decrease to the Accounts Payable account, as the company is paying off a balance owed to a supplier. Therefore, the correct answer is D. There is no need to adjust Purchases or Inventory accounts as the payment relates to a liability (Accounts Payable) and not to inventory costs. The payment will also result in a decrease to Cash, but this is not the most relevant effect in this case.