The Entry to Record a Purchase of $13,000 on Account

question 42

Multiple Choice

The entry to record a purchase of $13,000 on account, terms of 2/10, n/30, would include a:

• A) debit to Purchases Discount for $260.
• B) credit to Accounts Payable for $13,000.
• C) debit to Accounts Payable for $13,000.
• D) credit to Cash for $13,000.

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Definitions:

Line Managers

Managers who have direct responsibility over a certain department or division within an organization, including the power to make decisions and oversee its employees’ work.

Legal Trouble

Situations or circumstances in which an individual or entity is involved in legal proceedings or litigation.

Outsourcing

The business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees and staff.

Payroll

The total amount of wages and salaries paid by a company to its employees, as well as the process of calculating and distributing these payments.