Sunset,Inc.purchased merchandise from Rumble Music Company on June 5,2014.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.Sunset received the merchandise on June 10,2014.Sunset paid the amount due on June 13,2014. Sunset uses the periodic inventory system.What effect does recording the purchase of merchandise on June 5,2014 have on Sunset's accounting equation?
A) Assets and liabilities increase.
B) Liabilities increase and stockholders' equity decreases.
C) Assets and stockholders' equity increase.
D) Liabilities and stockholders' equity decrease.
Correct Answer:
Verified
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