Consider the Following Short Case as You Respond to the Question

question 34

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 balance sheet accounts would be involved?

• A)Two
• B)Three
• C)Four
• D)More than four

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Definitions:

Finished Goods Inventory

Products that have completed the manufacturing process but have not yet been sold to customers.