Question - A supplier's payment terms are 3/15, n/30. An invoice of the amount $3,500 is dated April 5th, and the payment is made on April 25th. What journal entry is prepared by the customer when the payment is made? Assume the customer uses the periodic inventory system.
a. DrAccounts Payable $3,500, Cr Cash $3,395, Cr Inventory $105
b. DrAccounts Payable $3,500, Cr Cash $3,395, Cr Cost of Goods Sold $105
c. DrAccounts Payable $3,500, Cr Purchase Discount $105, Cr Cash $3,395
d. DrAccounts Payable $3,500, Cr Cash $3,500