Multiple Choice
Park, Inc.purchased merchandise from Jay Zee Music Company on June 5, 2016.The goods were shipped the same day.The merchandise's selling price was $15,000.The credit terms were 1/10, n/30.The shipping terms were FOB shipping point.Park received the merchandise on June 10, 2016.Park paid the amount due on June 13, 2016.
Park uses the periodic inventory system.What effect does recording the purchase of merchandise on June 5, 2016 have on Park's accounting equation?
A) Liabilities and stockholders' equity decrease.
B) Liabilities increase and stockholders' equity decreases.
C) Assets and liabilities increase.
D) Assets and stockholders' equity increase.
Correct Answer:
Verified
Correct Answer:
Verified
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