On June 1, Johnson Company Purchased $8,000 of Inventory on Account

question 83

Multiple Choice

On June 1, Johnson Company purchased $8,000 of inventory on account from Schmid Company on June 1. Schmid Company offers a 4% discount if payment is received within 15 days. Johnson Company records the purchase using the net method and the perpetual inventory system. Johnson Company paid for the inventory on June 30. The journal entry on June 30 by Johnson Company includes ________.

• A) a debit to Accounts Payable for $7,680
• B) a debit to Accounts Payable for $8,000
• C) a credit to Interest Expense for $320
• D) a credit to Cash for $7,680

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Definitions:

Output

The total amount of goods and services produced by an economy, business, or machine in a given period.

MC Equals MR

A condition in economics where the marginal cost of producing an additional unit is equal to the marginal revenue received from selling that unit, often used to determine the optimal level of production in perfectly competitive markets.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded by consumers.

Monopoly

A market structure characterized by a single seller who has exclusive control over the supply of a good or service, often leading to reduced competition.