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. If Sunset uses the periodic inventory system,the effect of recording the payment on June 13,2014,will include

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When Sunset pays the amount due on June 13, 2014, it will decrease the liability of accounts payable by $15,000 as per the credit terms. Therefore, the effect of recording the payment will include a decrease to accounts payable for $15,000. Option A is incorrect because it would have been recorded at the time of the purchase, not at the time of payment. Option B is incorrect because under FOB shipping point, Sunset would have taken ownership of the goods when they were shipped, so the inventory would have been recorded upon receipt, not payment. Option C is incorrect because it only reflects the decrease in cash, not the corresponding decrease in accounts payable.