JJ CoPurchased on Account Merchandise with a List Price of $10,000

question 66

Multiple Choice

JJ Co.purchased on account merchandise with a list price of $10,000.Payment terms were 1/15,n/45.If collection occurs before the discount expires,what is the effect of the sales discount on the balance sheet?

• A)Decreases accounts receivable
• B)Decreases inventory
• C)Increases accounts payable
• D)Increases cash

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Definitions:

Crystalline Rocks

Rocks that are composed of crystals or have a crystal-like structure, often formed through the cooling of molten rock.

Continental Shield

A central region of many continents consisting of relatively old metamorphic and igneous rocks, commonly of Precambrian age.

Sediment-Filled Basin

A low area on the earth's surface where sediments have accumulated over time, often forming layers that can contain valuable geological information.

Regional Effects

Regional effects refer to the impacts or consequences of natural or human activities that are felt over a wide geographic area, often crossing administrative boundaries.