Lynn Corporation Bought $8,000 of Merchandise from Woods Corporation, Terms

question 1

Multiple Choice

Lynn Corporation bought $8,000 of merchandise from Woods Corporation, terms 2/10, n/30. The company uses the periodic inventory system and the voucher system. The journal entry to record the payment under the net method after the discount period would be to:

• A) debit Vouchers Payable $8,000; credit Cash $8,000.
• B) debit Vouchers Payable $8,000; credit Discounts Lost $160; credit Cash $7,840.
• C) debit Vouchers Payable $7,840; credit Cash $7,840.
• D) debit Vouchers Payable $7,840; debit Discounts Lost $160; credit Cash $8,000.

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Definitions:

Louis XIV

King of France from 1643 to 1715, known as the Sun King, he ruled for the longest time in European history and significantly influenced the course of French absolutism.

Habsburg Powers

Refers to the dynasty that ruled over various European territories and empires, including Austria and Spain, from the medieval period through the 20th century, known for its significant influence in European politics.

Absolutism

A form of government where the ruler holds total authority over the government and the lives of the people, often found in monarchies.

Rulers

Individuals who hold a position of authority and control in governance, often within a monarchy or an empire, making key decisions and leading the state.