Using the Gross Method, Record the Payment of the Following

question 27

Multiple Choice

Using the gross method, record the payment of the following transaction in time to take the discount. Clip Company bought $15,000 of merchandise, terms 1/15, n/45. The company uses the voucher system and the periodic inventory method.

• A) Debit Cash $15,000; credit Vouchers Payable $15,000.
• B) Debit Vouchers Payable $15,000; credit Cash $14,850; credit Purchases Discount $150.
• C) Debit Vouchers Payable $14,850; credit Cash $14,850.
• D) Debit Vouchers Payable $15,000; credit Cash $15,000.

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Definitions:

ISP

Internet Service Provider, a company that provides customers access to the Internet and related services.

Rural Areas

Regions located outside towns and cities, often characterized by lower population density and primarily agricultural land use.

Peer-To-Peer Processing

A distributed network architecture where each participant (peer) has equivalent capabilities and responsibilities, differing from traditional client-server models.

Fat Clients

Fat clients, also known as thick clients, are computers in a client-server architecture that handle the bulk of data processing operations themselves, rather than relying on a server.