A Merchandiser Purchases Inventory on Account Under a Perpetual Inventory

question 160

Multiple Choice

A merchandiser purchases inventory on account under a perpetual inventory system with terms of 2/10 n/30. The merchandiser would:

• A)credit Inventory on date of payment if the discount is taken.
• B)credit Inventory on date of payment if the discount is not taken.
• C)credit Purchases Discounts on date of purchase if the discount is taken.
• D)debit Purchases Discounts on date of purchase if the discount is not taken.

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Definitions:

Management Theorist

An expert or scholar who develops concepts and principles regarding how to organize, plan, direct, and control resources and activities within organizations.

Middle Management

A level of management in an organization that acts as an intermediary between executive management and operational staff, responsible for implementing organizational policies and strategies.

Systematic Program

A planned set of activities or procedures designed to achieve specific goals or outcomes, often structured and organized in a methodical way.

Employee Development

Organizational efforts aimed at helping employees acquire or enhance skills, competencies, and knowledge necessary for their professional growth and job performance.