Consider the Following Short Case as You Respond to the Question

question 5

Multiple Choice

Consider the following short case as you respond to the question: VLC Corporation sold merchandise with a cost of $200 on account for $300 to PRT Corporation; credit terms were 2/10, n/30.VLC paid the outgoing freight charge of $10.PRT paid the invoice within the discount period.Considering all entries VLC would make in its AIS to record all the preceding transactions, how many different income statement accounts would be involved?

• A)Three
• B)Four
• C)Five
• D)More than five

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Definitions:

Audience Members

Individuals who are part of the audience, especially in a live event or as viewers or listeners of a broadcast or performance.

Three-step Writing Process

A methodology consisting of planning, writing, and completing to enhance the clarity, impact, and efficiency of written communication.

Writing Process

A series of steps that writers follow to complete a document, including pre-writing, drafting, revising, and editing.

Planning

The process of making plans for something, often involving setting goals, identifying steps to achieve those goals, and scheduling tasks.