Jacob Co. bought $13,000 worth of inventory on account from Homer Co. on terms 3/10, n/30. Jacob Co. pays the balance on June 10^th, the last day of the discount period.

When Jacob Co., the buyer, makes journal entry to record the transaction on June 10^th, what is the effect on the accounting equation?

	Decrease Cash $12,610, decrease Inventory $390 and decrease Accounts Payable $13,000
	Decrease Cash $13,000 and decrease Accounts Payable $13,000
	Decrease Cash $12,610 and decrease Accounts Payable 12,610
	Decrease Cash $12,740, decrease Inventory $260 and decrease Accounts Payable $13,000