Llewelyn Company paid the amount due on a purchase of merchandise on account. Llewelyn uses the perpetual

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Question:

Llewelyn Company paid the amount due on a purchase of merchandise on account. Llewelyn uses the perpetual inventory system. Which of the following reflects the effect of the payment on the financial statements?

Asset = Liab. + Stk.
Equity Rev. - Exp. = Net Inc. Stmt of
Cash Flows
A. - = - + NA NA - NA = NA - OA
B. - = - + NA NA - + = - - OA
C. + - = NA + NA NA - NA = NA - IA
D. + - = NA + NA NA - NA = NA - OA