Park, Inc.purchased merchandise from Jay Zee Music Company on June 5, 2016.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, 2016.Park paid the amount due on June 13, 2016.
If Park uses the periodic inventory system, the effect of recording the payment on June 13, 2016, will include
A) a decrease to Accounts Payable for $15,000.
B) a decrease to Purchases for $15,000.
C) a decrease to Cash for $15,000.
D) an increase to Inventory for $14,850.
Correct Answer:
Verified
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Q116: Transportation-in is
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Q119: Cost of goods sold represents
A) Expired costs
Q120: All of the following statements regarding the
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