Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 1/10, n/30 for $16,400. When recording the payment of the invoice within the discount period in its cash payments journal, Farthington would enter:

Multiple Choice

A. $16,400 in the Cash Cr. column and $16,400 in the Inventory Dr. column.

B. $16,400 in the Cash Cr. column and $16,400 in the Accounts Payable Dr. column.

C. $16,400 in the Inventory Cr. column; $16,236 in the Accounts Payable Dr. column; and $164 in the Inventory Cr. column

D. $16,236 in the Accounts Payable Dr. column and $16,236 in the Cash Cr. column.

E. $16,400 in the Accounts Payable Dr. column; $16,236 in the Cash Cr. column; and $164 in the Inventory Cr. column.

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