Park, Inc.purchased merchandise from Jay Zee Music Company on June 5, 2015.The goods were shipped the same day.The merchandise's selling price was $15,000.The credit terms were 1/10, n/30.The shipping terms were FOB shipping point.Park received the merchandise on June 10, 2015.Park paid the amount due on June 13, 2015.
If Park uses the periodic inventory system, the effect of recording the payment on June 13, 2015, will include

Question

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Since Park, Inc. uses the periodic inventory system, the purchase of merchandise would be recorded by increasing the Purchases account and increasing the Accounts Payable account. When the payment is made on June 13, 2015, it would result in a decrease to the Cash account and a decrease to the Accounts Payable account. Therefore, the effect of recording the payment on June 13, 2015, would include a decrease to Accounts Payable for $15,000.

Park, IncPurchased Merchandise from Jay Zee Music Company on June 5