Posted: February 17th, 2016

Downwards adjustments

When a supplier makes a downward adjustment in the amount owed by a creditor, the creditor will:
a) reduce the amount of the account payable to the supplier, and decrease an asset such as inventory.
b) increase the amount of the account payable to the supplier, and decrease an asset such as inventory.
c) reduce the amount of the account payable to the supplier, and increase cash.
d) reduce the account of the account payable to the supplier, and decrease cash.