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:

Smooth Troughs

Gently sloping depressions or valleys often found on the ocean floor, formed by sedimentation or tectonic activities.

Marine Sediments

Particles of organic and inorganic matter that accumulate in a loose, unconsolidated form on the ocean floor.

Internal Shear

Internal shear refers to the internal deformation of a material or geological structure due to shear stress.

Glacier

A large, slow-moving mass of ice formed by the accumulation and compaction of snow on mountains or near poles.