You purchased $8,000 of inventory on terms 2/10, n/30.  If you pay the bill on day five, which of the following are true statements relating to just the day five transaction? A. You will credit cash for $8000 B. You will debit inventory for $160 C. You will credit inventory for $160 D. You will credit cash for $7,840 E. You will label this transaction as a cash entry F. You will label this transaction as paid bill.   Select all that apply.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You purchased $8,000 of inventory on terms 2/10, n/30. 

If you pay the bill on day five, which of the following are true statements relating to just the day five transaction?


A. You will credit cash for $8000
B. You will debit inventory for $160
C. You will credit inventory for $160
D. You will credit cash for $7,840
E. You will label this transaction as a cash entry
F. You will label this transaction as paid bill.
 
Select all that apply.
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