Kahiltna Company, a manufacturer of air conditioners, sold 100 units to LeConte Company on November 17, 2019. The units have a list price of $400 each, but LeConte was given a 20% trade discount. The terms of the sale were 2/10, n/30. Kahiltna uses a periodic inventory system.

Question

Kahiltna's journal entries to record a full payment by LeConte on December 10, 2019, using the net method of accounting for purchase discounts would include:

		a debit to Interest Expense of $640
		a debit to Interest Expense of $800
		a debit to Accounts Payable of $32,000
		a debit to Accounts Payable of $31,200