Bruce operates a successful computer store and is flush with cash. He receives a bill from one of his suppliers in the amount of $1,000 with payment terms stated as follows: 2/15, n/30. The bill is dated May 15 and Bruce pays the bill on May 20 taking advantage of the terms. Which entry represents the payment? Assume he uses the periodic inventory system. Select one: 

a. Debit Accounts Payable $1,000, Credit Cash $980, Credit Merchandise Inventory $20 

b. Debit Accounts Payable $1,000, Credit Cash $980, Credit Purchase Discount $20 

c. Debit Accounts Payable $980, Credit Cash $980 

d. Credit Accounts Payable $980, Debit Cash $980

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The payment terms are 215 n30 which mea... View the full answer