Moreland Moldings purchased goods on credit costing $85,000 with terms of 3/10 n/30.Payment is made to the seller 7 days after the purchase.How would the payment be recorded?
A) Debit Inventory for $2,550,debit Cash for $82,450,and credit Accounts Payable for $85,000.
B) Debit Accounts Payable for $85,000,credit Cash for $82,450,and credit Cost of Goods Sold for $2,550.
C) Debit Accounts Payable for $85,000 credit Cash for $82,450,and credit Inventory for $2,550.
D) Debit Accounts Payable and credit Cash for $85,000.
Correct Answer:
Verified
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