Using the Gross Method, Record the Payment of the Following

question 91

Multiple Choice

Using the gross method, record the payment of the following transaction in time to take the discount. Connect Company bought $8,000 of merchandise, terms 2/10, n/30, and uses the periodic inventory system.

• A) Debit Cash $8,000; credit Vouchers Payable $8,000.
• B) Debit Vouchers Payable $8,000; credit Cash $7,840; credit Purchases Discount $160.
• C) Debit Vouchers Payable $7,840; credit Cash $7,840.
• D) Debit Vouchers Payable $8,000; credit Cash $8,000.

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Definitions:

Path Analysis

A statistical technique used for examining the direct and indirect relationships between multiple variables in complex models.

Reliable Change Index

A statistical measure used to determine whether the change in a subject's performance or score over time is significant and not due to measurement error.

Measurement Error

The difference between the observed value and the true value of what is being measured, due to various inaccuracies in measurement processes.

Client Progress

The positive changes, developments, or improvements experienced by a client as a result of therapeutic intervention, counseling, or treatment.