Question
On December 1, 2021, Rajeets company purchases $20,000 of inventory on credit. On December 30, 2021, Rajeets company pays cash for the inventory originally purchased
On December 1, 2021, Rajeets company purchases $20,000 of inventory on credit. On December 30, 2021, Rajeets company pays cash for the inventory originally purchased on credit. Which of the following best describes the total change in account balances during 2021? (Note: Assume there were no other transactions during 2021.) A. There was no change in Accounts Payable, Cash, or Inventory. B. Cash and Accounts Payable increased, but Inventory did not change. C. Cash and Accounts Payable decreased, but Inventory increased. D. Cash decreased, Accounts Payable did not change, and Inventory increased. E. Cash increased, Accounts Payable did not change, and Inventory decreased.
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