Moreland Moldings purchased goods on credit costing $85,000 with terms of 3/10 n/30. Payment is made to the seller 7 days after the purchase. How would the payment be recorded?
A. Debit Accounts Payable for $85,000 credit Cash for $82,450, and credit Inventory for $2,550.
B. Debit Accounts Payable for $85,000, credit Cash for $82,450, and credit Cost of Goods Sold for $2,550.
C. Debit Accounts Payable and credit Cash for $85,000.
D. Debit Inventory for $2,550, debit Cash for $82,450, and credit Accounts Payable for $85,000.
Answer: A
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