Question
On June 8, Aughtry Corp. purchased inventory on account for $15,000 with terms of 3/15, n/30. On June 10, Aughtry Corp. returned $1,000 worth of
On June 8, Aughtry Corp. purchased inventory on account for $15,000 with terms of 3/15, n/30. On June 10, Aughtry Corp. returned $1,000 worth of inventory, and then paid the remaining balance on June 30. How would Aughtry record the payment on June 30?
A) | Debit Accounts Payable $14,000; Credit Cash $14,000 |
B) | Debit Accounts Payable $13,580; Debit Inventory $420; Credit Cash $14,000 |
C) | Debit Accounts Payable $14,000; Credit Inventory $420; Credit Cash $13,580 |
D) | Debit Accounts Payable $14,550; Debit Inventory $450; Credit Cash $15,000 |
E) | Debit Accounts Payable $15,000; Credit Inventory $450; Credit Cash $14,550 |
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