Foote Company recorded a purchase discount of $200 on merchandise the company had purchased on account a few days ago. Foote uses the perpetual inventory system. Which of the following answers reflects the effects of this event on the financial statements? Assets=Liab.+EquityRev.?Exp.=Net Inc.Cash FlowA.NA =(200)+200 200 ?NA=NA 200 OAB.NA =(200)+200 200 ?NA=200 NA  C.(200)=(200)+NA NA ?NA=NA (200)OAD.(200)=(200)+NA NA ?NA=NA NA  

A. Option A
B. Option B
C. Option C
D. Option D


Answer: D

Business

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