If Merchandise for Resale Is Purchased for $2,000, Terms 2/10

question 111

Multiple Choice

If merchandise for resale is purchased for $2,000, terms 2/10, n/30, the entry to record the purchase should be which of the following (assuming a periodic inventory system) ? $$\begin{array} { | l | l | r | l | r | } \hline & \text { Debit } && \text { Credit } \\\hline \text { A } & \text { Inventory } & \$ 2,000 & \text { Trade payables } & 1,960 \\\hline B & \text { Accounts payable } & 1,960 & \text { Inventory } & 1,960 \\\hline \text { C } & \text { Inventory } & 1,960 & \text { Trade payables } & 2,000 \\\hline D & \text { Purchases } & 2,000 & \text { Trade payables } & 2,000 \\\hline\end{array}$$

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D

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Lemon

In economic terms, refers to a product, especially a used car, that is found to be defective only after it has been bought.

Apprenticeship

A system of training a new generation of practitioners of a trade or profession with on-the-job training and often some accompanying study (classroom work and reading).

Entrepreneurs

Entrepreneurs are individuals who create, organize, and lead a business venture, taking on financial risks in the hope of profit, driven by innovation, and operationalizing ideas into marketable products or services.

Educated

Having acquired knowledge, skills, and learning, typically through formal schooling or self-directed study.