Assume That a Company Records Purchases Net of Discount

question 82

Multiple Choice

Assume that a company records purchases net of discount.If the company bought merchandise valued at $15,000 on credit terms 3/15,net 30,the entry to record a payment for half of the purchase within the discount period would include a debit to

• A) Accounts Payable for $7,275 and a credit to Cash for $7,275
• B) Accounts Payable for $7,500 and a credit to Cash for $7,500
• C) Accounts Payable for $7,275 and to Interest Expense for $250,and a credit to Cash for $7,500
• D) Accounts Payable for $7,275 and to Interest Revenue for $250 and a credit to Cash for $7,500.

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Definitions:

Painful Stimulus

An external or internal event or trigger that can cause a physical or emotional experience of pain.

Intonations

The variation of pitch in speech that affects the meaning of words, conveying emotions and grammatical signals.

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The stage of human development that begins around the end of the eighth week after conception and continues until birth.

Embryo

An early developmental stage in many multicellular organisms, following fertilization and preceding fetal development in humans.