Baylor Company purchased merchandise on account, $3,000, with terms 2/10, n/30. The entry required of Baylor Company to record the transaction in the cash payments journal, assuming payment is made within the discount period, is
A) debit Accounts Payable, $3,000; credit Sales Discounts, $60; credit Cash, $2,940.
B) debit Accounts Payable, $2,940; credit Cash, $2,940.
C) debit Accounts Payable, $3,000; credit Cash, $3,000.
D) debit Accounts Payable, $3,000; credit Purchases Discounts, $60, credit Cash, $2,940.
E) credit Accounts Payable, $3,000; credit Cash $3,000.
Correct Answer:
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