Question
Lionel Co. purchased goods costing $5,700. The purchase was made on account with terms of 5/10 n/45. The original purchase was recorded with a DEBIT
Lionel Co. purchased goods costing $5,700. The purchase was made on account with terms of 5/10 n/45. The original purchase was recorded with a DEBIT to Inventory and a CREDIT to Accounts Payable for $5,700. The account was paid in cash after 23 days.
Which ONE of the following is included in the journal entry to record the payment of cash on account after 23 days?
Group of answer choices
A CREDIT to Cash for $5,700
A CREDIT to Accounts Payable for $5,700
A DEBIT to Accounts Payable for $5,415
A DEBIT to Cash for $5,415
A CREDIT to Accounts Payable for $5,415
A CREDIT to Inventory for $285
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Financial Accounting
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann
5th edition
1259914895, 978-1259914898
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