The Entry to Record Payment of a Voucher, for an Invoice

question 35

Multiple Choice

The entry to record payment of a voucher, for an invoice after the discount period, under the net method and the periodic inventory system will include:

• A) a debit to Purchase Discounts.
• B) a credit to Purchase Discounts.
• C) a debit to Discounts Lost.
• D) None of these is correct.

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Definitions:

Period Costs

Expenses that are not tied directly to the production process and are expensed in the period they are incurred, such as selling, general, and administrative expenses.