5.

Coronado Company made a purchase of merchandise on credit from Wildhorse Company on August 8, for $8600, terms 2/10, n/30. On August 17, Coronado makes the appropriate payment to Wildhorse. The entry on August 17 for Coronado Company is:

Accounts Payable 8428

Cash 8428

Accounts Payable 8600

Purchase Returns and Allowances 172

Cash 8428

Accounts Payable 8600

Cash 8600

Accounts Payable 8600

Inventory 172

Cash 8428