Wilbur Company purchased $10,000 of equipment on December 20,2015 on terms 2/15,net 30.Wilbur paid for the equipment on the 15th day following purchase and took advantage of the discount.Which of the following statements is correct?
A) Wilbur will record a cash outflow from operating activities of $10,000 in its 2015 financial statements.
B) Wilbur will record a cash outflow from operating activities of $9,800 in its 2015 financial statements.
C) Wilbur will record a cash outflow from operating activities of $10,000 in its 2016 financial statements.
D) Wilbur will record a cash outflow from operating activities of $9,800 in its 2016 financial statements.
Correct Answer:
Verified
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