Martin Corporation Used the Gross Method of Recording Purchases, the Voucher

question 14

Multiple Choice

Martin Corporation used the gross method of recording purchases, the voucher system and the periodic inventory method. A purchase of $10,000, 2/15, n30 would be recorded as:

• A) debit Purchases $10,000; credit Accounts Payable $10,000.
• B) debit Purchases $10,000; credit Vouchers Payable $10,000.
• C) debit Purchases $9,800; credit Accounts Payable $9,800.
• D) debit Purchases $9,800; credit Vouchers Payable $9,800.

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Definitions:

Solute

A dissolved substance. Compare with solvent.

Particles

Small localized objects to which can be ascribed several physical or chemical properties such as volume or mass.

Osmoregulation

The process by which living organisms control the concentration of water and electrolytes in their bodies to maintain homeostasis.

Concentration

The amount of a substance in a specific volume of solution, often measured in moles per liter.