Use the Following Information for Questions

question 76

Multiple Choice

Use the following information for questions
Chi Co.records purchases at net amounts.On May 5 Chi purchased merchandise on account,
$8,000, terms 2/10, n/30.Pye returned $500 of the May 5 purchase and received credit on account.At May 31 the balance had not been paid.
-The amount to be recorded as a purchase return is

• A)$450.
• B)$510.
• C)$500.
• D)$490.

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Definitions:

Regional Trade Communities

are groups of neighboring countries that have agreed to significantly reduce or eliminate trade barriers among themselves.

Central America

A geographical region in the Americas bordered by Mexico to the north, the Caribbean to the east, the Pacific Ocean to the southwest, and South America to the southeast.

Europe

A continent located entirely in the Northern Hemisphere and mostly in the Eastern Hemisphere, comprising a variety of countries, cultures, and languages.

Advisory Opinion

An opinion issued by a court or a commission that does not have the effect of adjudicating a specific legal case, but merely advises on the constitutionality or interpretation of a law.