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A suppliers payment terms are 3/15, n/30. An invoice with the amount of $3,500 is dated March 5th, and the payment was made on March
A suppliers payment terms are 3/15, n/30. An invoice with the amount of $3,500 is dated March 5th, and the payment was made on March 25th. Which journal entry is prepared by the customer when the payment is made? Assume the customer uses the perpetual inventory system. Select one:
a. DrAccounts Payable $3,500, Cr Cash $3,500
b. DrAccounts Payable $3,500, Cr Cash $3,395, Cr Cost of Goods Sold $105
c. DrAccounts Payable $3,500, Cr Cash $3,395, Cr Inventory $105
d. DrAccounts Payable $3,500, Cr Cash $3,395, Cr Purchase Discount $105
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