If the Net Approach Method Is Applied,the Purchase of $2,000

question 93

Multiple Choice

If the net approach method is applied,the purchase of $2,000 of merchandise with terms 2/10,n/30 is recorded by:

• A)debit Cash $2,000; credit Accounts Payable $2,000.
• B)debit Accounts Payable $2,000; credit Purchases $2,000.
• C)debit Purchases $2,000; credit Accounts Payable $2,000.
• D)debit Purchases $1,960; credit Vouchers Payable $1,960.

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Definitions:

Void

A legal term indicating that a contract or agreement is null, invalid, and has no legal effect.

Disaffirm

The legal act of denying or rejecting a contract or agreement, especially by a party who was not competent to enter it at the time of agreement.

Student Loan

A type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books, and living expenses.

Quasi-Contract

An obligation imposed by law to prevent unjust enrichment, even though no actual contract exists between the parties involved.