Day Company Purchased $3,000 of Merchandise on Credit, Terms 3/15

question 53

Multiple Choice

Day Company purchased $3,000 of merchandise on credit, terms 3/15 n/30. The entry to record payment for the merchandise within the discount period under a periodic inventory system would include a:

• A)debit to Inventory of $1,940.
• B)debit to Accounts Payable of $1,940.
• C)credit to Purchase Discounts of $90.
• D)credit to Inventory of $90.

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Definitions:

Copyright

A form of intellectual property protection granted by law to the creators of original works of authorship, including literary, dramatic, musical, and certain other intellectual works.

Life of the Creator

A legal term often associated with copyright laws, referring to the duration in which copyright protection lasts based on the creator's lifetime plus a number of years posthumously.

First-to-File Policy

A legal principle where the first party to file a patent application for an invention is granted the patent, regardless of who was the first to invent.

Copyright Law

Legislation that protects the rights of creators over their original works, including the regulation of use, distribution, and reproduction of such works.