On March 15,2010,Ryan Company Purchased $10,000 of Merchandise on Credit $\quad$

question 88

Multiple Choice

On March 15,2010,Ryan Company purchased $10,000 of merchandise on credit subject to terms of 2/10,n/30.Ryan Company records its purchases using the gross amount.The periodic inventory system is used.Which of the following journal entries is correct when Ryan Company pays for these goods on March 30,2010?

• A) Accounts payable \(\quad \)9,800
• \(\quad \)Cash \(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)9,800
• B) Accounts payable \(\quad \)\(\quad \)10,000
• \(\quad \)Cash\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)10,000
• C) Accounts payable \(\quad \)10,000
• \(\quad \)Cash \(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)9,800
• \(\quad \)Purchase discounts\(\quad \)\(\quad \)\(\quad \)200
• D) Accounts payable \(\quad \)9,800
• Purchase discounts \(\quad \)200
• \(\quad \)\(\quad \)Cash\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)10,000

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Definitions:

Exchange Theory

A social theory that explains human behavior in terms of the exchange of goods, services, and favors, aiming for balance and reciprocity in interpersonal relationships.

Norm Of Reciprocity

A social norm that prescribes individuals to respond to others' actions and gestures with similar actions, fostering cooperation and social exchanges.

Body Language

Non-verbal communication through physical behaviors, such as gestures, postures, and facial expressions, which convey messages or emotions.

Widely Shared Expectations

Norms or beliefs that are commonly held and anticipated by a large number of people within a society or group.