(Appendix) a Purchase Was Made for $200 on Account with Credit

question 33

Multiple Choice

(Appendix) A purchase was made for $200 on account with credit terms of 2/10, n/30. The purchase was recorded using the net-price method. If payment is made 25 days later, the entry to record the payment will be to

• A) debit Accounts Payable for $200 and credit Cash for $200.
• B) debit Accounts Payable for $204, credit Purchases Discounts Lost for $4, and credit Cash for $200.
• C) debit Accounts Payable for $196, debit Purchases Discounts Lost for $4, and credit Cash for $200.
• D) debit Purchases for $196, debit Purchases Discounts Lost for $4, and credit Cash for $200.

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Definitions:

Flush()

A method often used to clear or empty a buffer in programming, ensuring that all output operations are performed immediately.

Newline Sequence

A character or sequence of characters used to represent the end of a line of text and the start of a new line.

'\n'

A character used in programming to represent a newline, signaling the end of a line of text.

Polymorphism

In object-oriented programming, the ability of different objects to respond to the same function call in different ways depending on their data types or classes.