Question
Rebocho Industries purchased $10,000 of merchandise on February 1, 2020 with credit terms of 2/10, n/60. It returned $2,500 worth of merchandise on February 4.
Rebocho Industries purchased $10,000 of merchandise on February 1, 2020 with credit terms of 2/10, n/60. It returned $2,500 worth of merchandise on February 4. Rebocho uses the periodic inventory system and net method for recording purchase discounts. Assume Rebocho paid its invoice on February 9. What is the effect of the entry to record the payment on February 9 on Rebochos assets, liabilities and equity, respectively? Multiple Choice
a.No effect; Increase; Decrease
b.Decrease; Decrease; No effect
c.Decrease; Decrease; Decrease
d.Decrease; No effect; Decrease
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Global Financial Accounting And Reporting Principles And Analysis
Authors: Peter Walton, Walter Aerts
2nd Edition
1408017725, 978-1408017722
