Use the Following Information for Questions

question 45

Multiple Choice

Use the following information for questions
Richey Co.records purchases at net amounts.On May 5 Richey purchased merchandise on account, $16,000, terms 2/10, n/30.Richey returned $1,200 of the May 5 purchase and received credit on account.At May 31 the balance had not been paid.
-By how much should the account payable be adjusted on May 31?

• A)$0.
• B)$344.
• C)$320.
• D)$296.

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Definitions:

Tranquilizing Drugs

Medications used to reduce tension and anxiety, acting on the central nervous system to calm individuals.

Uncontrollable

Describing events or processes that cannot be managed, directed, or restrained.

Human-Made

Refers to objects, environments, or processes that are created or significantly altered by humans, as opposed to occurring naturally in the environment.

Familiar

Well known from long or close association, giving a sense of comfort or recognition.