A Company That Uses the Net Method of Recording Purchases

question 230

Multiple Choice

A company that uses the net method of recording purchases and a perpetual inventory system purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. The correct journal entry to record the payment on July 28 is:

• A) Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568.
• B) Debit Cash $1,600; credit Accounts Payable $1,600.
• C) Debit Merchandise Inventory $1,600; credit Cash $1,600.
• D) Debit Accounts Payable $1,568; debit Discounts Lost $32; credit Cash $1,600.
• E) Debit Accounts Payable $1,800; credit Cash $1,800.

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Definitions:

Behavioral Measure

is a quantifiable method used to assess the actions or reactions of individuals in a research setting, often utilized to infer psychological states or traits.

Self-Report

A method in which individuals provide subjective data about their own thoughts, feelings, or behaviors, typically through questionnaires or interviews.

Behavioral

Pertaining to the actions or reactions of individuals or groups in response to external or internal stimuli.

Self-report

A method of gathering data where participants directly report their own experiences, attitudes, or behaviors, typically through questionnaires or interviews.