A Company Purchased Inventory for $4,000 from a Vendor on Account,FOB

question 145

Multiple Choice

A company purchased inventory for $4,000 from a vendor on account,FOB shipping point,with terms of 2/15,n/30.The company paid $200 cash for freight in.The entry to record the payment of the invoice within 15 days of the invoice date by the purchaser would include ________.(Assume a perpetual inventory system.)

• A) a debit to Accounts Payable for $3,920 and a credit to Cash for $3,920
• B) a debit to Accounts Payable for $4,000, a credit to Merchandise Inventory for $200, and a credit to Cash for $3,800
• C) a debit to Accounts Payable for $4,000, a credit to Merchandise Inventory for $80, and a credit to Cash for $3,920
• D) a debit to Accounts Payable for $3,920, a debit to Merchandise Inventory for $80, and a credit to Cash for $4,000

Recognize the structure of hypothetical and disjunctive syllogisms.

Distinguish between true premises and conclusions within deductive arguments.

Understand the characteristics of sound arguments.

Identify universal propositions within arguments.

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Definitions:

Payment In Full

A payment that settles a debt or obligation completely, leaving no remaining balance or outstanding dues.

Accepted Check

An accepted check is a check that the drawee bank has certified as good for payment, ensuring the availability of funds when presented.

Output Contract

An agreement in which a seller agrees to sell and a buyer agrees to buy all the output that a producer produces, without specifying exact quantities.

Manufacturers

Entities involved in the process of converting raw materials into finished products through various means, including physical, labor-intensive, or mechanical processes.