On June 15, Paradise Park purchased merchandise for the racetrack. The invoice was for $4,500, terms 2/10, n/30. On June 20, Paradise Park returned $200 of merchandise for credit. On June 25, it paid the amount owed. The debit to Purchases on June 15 is

a. $4,214.00.

b. $4,786.00.

c. $4,300.00.

d. $4,500.00.

Question

Mathematics

Lin

20 October, 22:21

On June 15, Paradise Park purchased merchandise for the racetrack. The invoice was for $4,500, terms 2/10, n/30. On June 20, Paradise Park returned $200 of merchandise for credit. On June 25, it paid the amount owed. The debit to Purchases on June 15 is

a. $4,214.00.

b. $4,786.00.

c. $4,300.00.

d. $4,500.00.

+5

Answers (2)

Know the Answer?

Collin Cochran · Answer 1

The correct answer is letter D. $4,500.00

Jefferson Cardenas · Answer 2

During June 15 when Paradise Park purchased the merchandise inventory for the racetrack the debit amount to the Purchases account is 4,500. Unless the accounting policy of the company is to declare the purchase net of discount, it is then the only time that the amount to be debited is 4,410 only.