A Company Purchased Inventory for $2,000 from a Vendor on Account

question 42

Multiple Choice

A company purchased inventory for $2,000 from a vendor on account, FOB shipping point, with terms of 2/10, n/30. The company paid $100 cash for freight in. The entry to record payment of invoice within 10 days by the purchaser would include: (Assume a perpetual inventory system)

• A)a debit to Accounts Payable for $1,960 and a credit to Cash for $1,960.
• B)a debit to Accounts Payable for $2,000, a debit to Merchandise Inventory for $100 and a credit to Cash for $1,960.
• C)a debit to Accounts Payable for $2,000, a credit to Merchandise Inventory for $40 and a credit to Cash for $1,960.
• D)a debit to Accounts Payable, for$1,960 a debit to Merchandise Inventory for $40 and a credit to Cash for $2,000.

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Definitions:

Evolutionary Change

The process through which species undergo modification and diversification over generations due to genetic variation and natural selection.

Natural Selection

The process where organisms better adapted to their environment tend to survive and produce more offspring, a fundamental concept in evolutionary biology.

Diploid

A cell or organism that has two sets of chromosomes, one from each parent, typical of most adult organisms.

Alleles

Different forms of a gene that can exist at a specific locus on a chromosome, contributing to the genetic diversity of organisms.