Multiple Choice

Increases accounts payable

Decreases accounts receivable

Increases cash

Decreases inventory

Save d JJ Company purchased on account merchandise with a list price of $10,000. Payment terms were 1/15. n/45. If payment occurs before the discount expires, what is the effect of the purchase discount on the balance sheet? Multiple Choke O O O O Increases accounts payable Decreases accounts receivable lncreases cash Decreases inventory