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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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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