A Company That Uses the Net Method of Recording Purchases

question 6

Multiple Choice

A company that uses the net method of recording purchases made a purchase of $400 with terms of 2/10,n/30.The entry to record the purchase would be:

• A)Debit Merchandise Inventory $392;credit Accounts Payable $392.
• B)Debit Merchandise Inventory $400;credit Discounts Lost $8;credit Accounts Payable $392.
• C)Debit Merchandise Inventory $392;credit Cash for $392.
• D)Debit Merchandise Inventory $392;debit Discounts Lost $8;credit Accounts Payable $400.
• E)Debit Accounts Payable $400;credit Discounts Lost $8;credit Cash $392.

Comprehend the nature and importance of leader-follower relationships and the leader-member exchange theory.

Recognize the significance of power distance and its orientation in leadership and organizational behavior.

Identify and explain the process and impact of upward leadership within organizations.

Understand the dynamics of idiosyncrasy credits and their relevance to leadership and organizational norms.

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Definitions:

Comparative Advantage

The ability of an individual or group to carry out a particular economic activity more efficiently than another activity.

Import

The purchase of goods or services from foreign producers, bringing them into one's home country.

Export

The sale of goods or services produced in one country to another country, contributing to a nation's gross domestic product.

Trucks

Heavy vehicles designed for transporting goods, often playing a critical role in logistics and supply chains.