Use the Following Information for Questions 56 and 57

question 107

Multiple Choice

Use the following information for questions 56 and 57.
During 2014, which was the first year of operations, Oswald Company had merchandise purchases of $985,000 before cash discounts. All purchases were made on terms of 2/10, n/30. Three-fourths of the items purchased were paid for within 10 days of purchase. All of the goods available had been sold at year end.
-Which of the following recording procedures would result in the highest cost of goods sold for 2014?1. Recording purchases at gross amounts2. Recording purchases at net amounts, with the amount of discounts not taken shown under "other expenses" in the income statement

• A) 1
• B) 2
• C) Either 1 or 2 will result in the same cost of goods sold.
• D) Cannot be determined from the information provided.

---

Definitions:

Autism Spectrum

A range of neurodevelopmental conditions characterized by challenges with social skills, repetitive behaviors, and communication, with varying degrees of severity.

Creative Intelligence

A facet of intelligence involving the ability to deal with new and different concepts and to come up with innovative solutions to problems.

Emotional Intelligence

The ability to perceive, understand, manage, and use emotions.

Existential Intelligence

The ability to grapple with big questions about human existence, such as the meaning of life, why we die, and how we got here, often associated with philosophical thinking.