Christian Company Uses the Gross Method of Recording Purchase Discounts

question 38

Multiple Choice

Christian Company uses the gross method of recording purchase discounts on inventory and the perpetual inventory system. When Christian Company makes payment for the inventory within the discount period, the bookkeeper will ________.

• A) debit Accounts Payable, credit Inventory and credit Cash
• B) debit Accounts Payable and credit Inventory
• C) debit Inventory and credit Cash
• D) debit Accounts Payable and credit Purchases

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Definitions:

Hungry

The feeling or condition of having a desire or need to eat food.

Afro-Caribbean Immigrants

Individuals from the Caribbean region of African descent who have migrated to other countries.

Educated and Prosperous

Describing individuals or societies that have achieved a high level of education and economic success.

African Americans

A racial or ethnic group in the United States with ancestry primarily from sub-Saharan Africa.