On June 1, Atkinson Company Purchased $7,000 of Inventory on Account

question 134

Multiple Choice

On June 1, Atkinson Company purchased $7,000 of inventory on account from Donnie Company. Donnie Company offers a 5% discount if payment is received within 15 days. Atkinson Company records the purchase using the gross method and the perpetual inventory system. Atkinson Company makes the payment for the inventory on June 10. The journal entry on June 10 by Atkinson Company includes ________.

• A) a debit to Cash for $7,000
• B) a credit to Cash for $6,650
• C) a debit to Inventory for $350
• D) a credit to Interest Expense for $350

---

Definitions:

Social Security Number

A nine-digit number issued to U.S. citizens, permanent residents, and temporary (working) residents, primarily used for tracking individuals for Social Security purposes.

Office Procedure Manual

A comprehensive document that outlines standardized procedures and practices within an office or organization.

Documentation Requirements

Specifications or guidelines for systematically recording information or data relevant to a particular process or project.

HIPAA Compliance Officer

A designated person responsible for ensuring that an organization adheres to the Health Insurance Portability and Accountability Act regulations, protecting patient health information.