Green Company Purchased $3,600 of Merchandise on Account, Terms 2/10

question 168

Multiple Choice

Green Company purchased $3,600 of merchandise on account, terms 2/10 n/30. If payment was made after the expiration of the discount period and a perpetual inventory system is used, the entry to record the payment would include a:

• A)credit to Inventory of $3,600.
• B)credit to Cash of $3,528.
• C)credit to Cash of $3,600.
• D)debit to Accounts Payable of $3,528.

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Definitions:

Unemployment

The situation where individuals who are willing and able to work cannot find jobs.

Labor Market

A marketplace where employers find workers and workers find jobs, characterized by supply and demand for labor.

Bureau of Labor Statistics

A U.S. government agency responsible for collecting, analyzing, and disseminating essential economic information related to labor market activity, working conditions, and price changes.

Unemployed Category

A classification for individuals who are without jobs and actively seeking work within the labor market.