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:

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Health problems that can occur in a baby when the mother drinks alcohol during pregnancy. These are less severe than fetal alcohol syndrome but may include growth and behavioral problems.

Menopause

Menopause marks the end of a woman's reproductive years, characterized by the cessation of menstrual periods and a decrease in hormonal production.

Gender Roles

Societal norms dictating the types of behaviors that are considered acceptable, appropriate, or desirable for people based on their actual or perceived sex.

Gender Stereotypes

Generalized views and preconceived ideas about attributes or characteristics that are or ought to be possessed by, or the roles that are or should be performed by, males and females.