The Entry to Record Payment of a Voucher for an Invoice

question 97

Multiple Choice

The entry to record payment of a voucher for an invoice within the discount period under the gross method will include:

• A) a debit to Purchase Discounts.
• B) a credit to Purchase Discounts.
• C) a debit to Cash.
• D) Both B and C would be in the entry.

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Definitions:

Books

Physical or electronic publications consisting of written, printed, or illustrated work bound together for reading or study.

Inventory Cost

The total cost associated with holding and managing inventory, including storage, insurance, and obsolescence.

Building

A structure with a roof and walls, such as a house or factory, used for living, working, storage, or other purposes.

Scarce Resources

Resources that are limited in availability and cannot satisfy all wants and needs due to their limited supply.