How Are Purchase Returns and Purchase Discounts Recorded by a Company

question 147

Multiple Choice

How are purchase returns and purchase discounts recorded by a company using the periodic inventory system?

• A)as a reduction to the Purchases account
• B)in contra-accounts to the Purchases account
• C)as operating expenses
• D)as miscellaneous expenses

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Definitions:

Cerebral Cortex

The outer layer of the cerebrum in the brain, associated with higher brain functions such as thought, reasoning, and memory.

Primary Motor Cortex

A region of the cerebral cortex involved in planning and executing voluntary movements.

Motor Speech Area

An area of the brain responsible for the planning and execution of speech, typically located in the frontal lobe.

Brain Waves

Patterns of neuronal electrical activity in the brain, detectable by EEG.