Exhibit 8-2 Walters Co

question 83

Multiple Choice

Exhibit 8-2 Walters Co.purchased raw materials with a catalog price of $70, 000 on March 2, 2010.Credit terms of 4/20, n/60 applied.Walters uses a perpetual inventory system and the net price method.
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Refer to Exhibit 8-2.If Walters pays for the purchase on March 31, 2010, what amount is recorded in the purchase discounts lost account?

• A)$ 0
• B)$ 2, 800
• C)$14, 000
• D)$28, 000