Park, IncPurchased Merchandise from Jay Zee Music Company on June 5

question 43

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.