On August 10, Charles Company purchased 75 refrigerators for $650 each from Appliances Wholesalers. The purchase was on account with terms of 3/10, n/30. Charles Company paid for 50 of the refrigerators on August 18 and the remaining refrigerators on August 30. Charles Company uses the gross method for purchase discounts and the perpetual inventory system to record the transactions. On August 30, Charles Company recorded ________.
A) a debit to Accounts Payable and a credit to Cash
B) a debit to Cash and a credit to Accounts Payable
C) a debit to Accounts Payable and a credit to Inventory
D) a debit to Cash and a credit to Inventory

Question

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On August 30, Charles Company would record a debit to Accounts Payable for the remaining amount owed and a credit to Cash, as they are paying off the remaining balance without any discount since the payment is made after the discount period.

On August 10, Charles Company Purchased 75 Refrigerators for $650