Travis Corporation Purchases Merchandise on Account from Jackson Company, Terms

question 113

Multiple Choice

Travis Corporation purchases merchandise on account from Jackson Company, terms 2/10, n/30.Travis and Jackson both use periodic inventory systems.If Travis pays within the discount period, Jackson will

• A)debit the amount of the discount to Sales Discounts.
• B)credit the amount of the discount to Cash.
• C)credit the amount of the discount to Purchases Discounts.
• D)credit the amount of the discount to Sales Revenue.

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Definitions:

Directly

In a straightforward or straight line manner; without intervening factors or intermediaries.

Marketing Channel

Pathways and processes through which goods and services flow from producers to consumers.

Intermediaries

Entities or individuals that act as middlemen between the producer and the consumer in the distribution process, facilitating transactions and logistics.

Manufacturers

Companies or individuals that produce goods for sale using raw materials and components through various processes.