Hutz Inc. purchased goods costing $2,200. The purchase was made on account with terms of 5/10, n/45.
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Hutz Inc. purchased goods costing $2,200. The purchase was made on account with terms of 5/10, n/45. The original purchase was recorded with a DEBIT to Inventory and a CREDIT to Accounts Payable for $2,200. The account was paid in cash after 31 days. Which ONE of the following is included in the journal entry to record the payment of cash on account after 31 days?
- A CREDIT to Inventory for $110
- A DEBIT to Accounts Payable for $2,090
- A DEBIT to Cash for $2,090
- A CREDIT to Accounts Payable for $2,200
- A CREDIT to Cash for $2,200
- A CREDIT to Accounts Payable for $2090
Expert Answer:
In this question say goods purchase 2200 in terms of 510 n45 that mean if we paid within 10 days ... View the full answer
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