Sunland Company purchased goods on account with a cost of $1150 on July 15, terms 2/10, net/30, on which a return of $150 is granted on July 18. In the tabular analysis that follows, the payment of the account in full on July 24 is recorded as a Assets Liabilities Stockholders' Equity Retained Earnings Cash + Inventory = Accounts Payable+ Common Stock + Rev. - Exp. - Div. O decrease to Cash $980, a decrease to Inventory $20, and a decrease to Accounts Payable $1000. O decrease to Cash $980, an increase to Interest Expense $20, and a decrease to Accounts Payable $980. O decrease to Cash $1000, a decrease to Inventory $20, and a decrease to Accounts Payable $980. O decrease to Cash $1150, and a decrease Accounts Payable $1150.
Sunland Company purchased goods on account with a cost of $1150 on July 15, terms 2/10, net/30, on which a return of $150 is granted on July 18. In the tabular analysis that follows, the payment of the account in full on July 24 is recorded as a Assets Liabilities Stockholders' Equity Retained Earnings Cash + Inventory = Accounts Payable+ Common Stock + Rev. - Exp. - Div. O decrease to Cash $980, a decrease to Inventory $20, and a decrease to Accounts Payable $1000. O decrease to Cash $980, an increase to Interest Expense $20, and a decrease to Accounts Payable $980. O decrease to Cash $1000, a decrease to Inventory $20, and a decrease to Accounts Payable $980. O decrease to Cash $1150, and a decrease Accounts Payable $1150.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Sunland Company purchased goods on account with a cost of $1150 on July 15, terms 2/10, net/30, on which a return of $150 is
granted on July 18. In the tabular analysis that follows, the payment of the account in full on July 24 is recorded as a
Stockholders' Equity
Retained Earnings
Cash + Inventory = Accounts Payable+ Common Stock + Rev. - Exp. Div.
Assets
a
Liabilities
O decrease to Cash $980, a decrease to Inventory $20, and a decrease to Accounts Payable $1000.
O decrease to Cash $980, an increase to Interest Expense $20, and a decrease to Accounts Payable $980.
O decrease to Cash $1000, a decrease to Inventory $20, and a decrease to Accounts Payable $980.
O decrease to Cash $1150, and a decrease Accounts Payable $1150.
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