On November 1, 2010, Cahill Stationers Purchased 100 Pounds of Linen

Multiple Choice

On November 1, 2010, Cahill Stationers purchased 100 pounds of linen paper at $2.50 per pound from the Northwest Paper. Northwest's credit terms are 2/10, net 30. Cahill remitted payment to Northwest on November 5. Cahill uses a perpetual inventory system. After both these transactions, Cahill would have recognized a

A) $245 increase in its purchases account.
B) $250 increase in its purchases account.
C) $245 increase in its inventory account.
D) $250 increase in its inventory account.
E) $255 increase in its inventory account.