What Is the Net Method of Recording Purchases

question 189

Multiple Choice

What is the net method of recording purchases?

• A)A purchase is originally recorded at its full amount with any cash discount taken recorded as a reduction to inventory at a later date.
• B)A purchase is originally recorded at its full amount less any available cash discount.
• C)A purchase is originally recorded at its full amount plus any available cash discount.
• D)A purchase is originally recorded at its full amount with any cash discount taken recorded as an increase to inventory at a later date.
• E)A purchase is originally recorded to a purchase discounts lost account with any cash discount taken recorded as a reduction to inventory at a later date.

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