Assume That a Company Records Purchases Net of Discount

Assume that a company records purchases net of discount. If the company bought merchandise valued at $10,000 on credit terms 3/15, net 30, the entry to record a payment for half of the purchase within the discount period would include a debit to

A) Accounts Payable for $4,850 and a credit to Cash for $4,850.
B) Accounts Payable for $5,000 and a credit to Cash for $5,000.
C) Accounts Payable for $4,850 and to Interest Expense for $150, and a credit to Cash for $5,000.
D) Accounts Payable for $4,850 and to Interest Revenue for $150 and a credit to Cash for $5,000.