Shelton Brothers, Inc Shelton Brothers uses a periodic inventory system. It purchased merchandise from BXP on account Inc on July 7, 2012, for $15,000. The credit terms were 1/10, n/30. Shelton paid the amount due on July 15. Refer to the information provided for Shelton Brothers, Inc What effect does recording the purchase of merchandise on July 7, 2012, have on Shelton's accounting equation?

A) Assets and liabilities increase.
B) Liabilities increase and equity decreases.
C) Assets and equity increase.
D) Liabilities and equity decrease.


A

Business

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