Mars Company Purchased $2,500 of Merchandise on Account, Terms 3/10

question 22

Multiple Choice

Mars Company purchased $2,500 of merchandise on account, terms 3/10 n/60. If payment was made within the discount period, the entry to record the payment under a periodic inventory system would include a credit to:

• A)Cash of $2,425.
• B)Inventory of $2,352.
• C)Accounts Payable of $2,400.
• D)Cash for $2,400.

---

Definitions:

NAALC

The North American Agreement on Labor Cooperation, an agreement between the USA, Canada, and Mexico to improve working conditions and living standards.

NAALC

The North American Agreement on Labor Cooperation, an agreement aimed at improving working conditions and living standards in Canada, Mexico, and the United States.

Multinational Companies

Corporations that own or control production of goods or services in one or more countries other than their home country.

NAALC

The North American Agreement on Labor Cooperation, an agreement between the USA, Canada, and Mexico to promote labor principles and enforce labor laws.