A Discount Received for a Purchase of an Inventory Item

question 12

Multiple Choice

A discount received for a purchase of an inventory item is recorded in the______ account.

• A)Income account: Purchases Discounts
• B)Expense account: Sales Discounts
• C)Cost of Goods Sold account: Merchandise Discounts
• D)Asset account: Inventory Asset

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Definitions:

E-Commerce

The buying and selling of goods and services through the internet.

Wholesale Rates

Prices offered for large quantities of goods, typically lower than retail prices, to distributors or retailers rather than to end consumers.

Online Travel Companies

Businesses that operate through the internet to offer travel-related services such as hotel bookings, flight reservations, and vacation packages directly to consumers.

Legal Obligations

Duties that the law requires an individual or entity to perform, which may arise from contracts, statutes, or regulations.