The entry to record a payment sent on a $900 account within the 1% discount period would include a
A) debit to Accounts Payable for $900.
B) debit to Accounts Payable for $891.
C) credit to Inventory for $909.
D) debit to Cash for $891.

Question

Quizplus · Accepted Answer

The entry would include a debit to Accounts Payable for $900 to remove the liability from the books, reflecting the full amount owed before the discount.

The Entry to Record a Payment Sent on a $900