Using the Perpetual Inventory System,discounts Taken on an Invoice,such as 3/10,n/30,would

question 79

Multiple Choice

Using the perpetual inventory system,discounts taken on an invoice,such as 3/10,n/30,would be:

• A) debited to Inventory.
• B) credited to Inventory.
• C) debited to Cost of goods sold.
• D) credited to Cost of goods sold.

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Definitions:

Child Support Payment

Payments made by a noncustodial parent to assist with the financial support of their children.

Alimony Payment

Payments made to a spouse or ex-spouse under a divorce or separation agreement, potentially deductible for the payer.

Deductible Student Loan Interest

Refers to the interest paid on a qualified student loan which may be deducted from income when calculating federal income tax.

Self-Employed Health Insurance

A tax deduction available to self-employed individuals for premiums paid on medical, dental, and long-term care insurance for themselves and their dependents.