On June 3,Maryland Company Purchased Merchandize Worth $800 on Credit,terms $\begin{array}{lc}\text { Accounts Payable } & 784 \\\text { Purchases Discounts } & 16 \\\text { Cash } &&800\end{array}$

question 92

Multiple Choice

On June 3,Maryland Company purchased merchandize worth $800 on credit,terms 2/10,n/30.The amount paid on June 15.What is the required journal entry to record the payment under the periodic inventory system?

• A)
• \(\begin{array}{lc}
• \text { Accounts Payable } & 784 \\
• \text { Purchases Discounts } & 16 \\
• \text { Cash } &&800
• \end{array}\)
• B)
• \(\begin{array}{ll}
• \text { Accounts Payable } & 800 \\
• \text { Purchases Discounts } &&16 \\
• \text { Cash }&&784
• \end{array}\)
• C)
• \(\begin{array}{ll}
• \text { Cash } & 800 \\
• \text { Accounts Payable } && 800
• \end{array}\)
• D)
• \(\begin{array}{ll}
• \begin{array}{c}
• \text { Accounts Payable } & 800\\
• \text { Cash }&& 800
• \end{array} \\
• \end{array}\)

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Definitions:

Consequential Damages

Refers to indirect damages that do not flow directly from the act but are a consequence of the initial act, such as loss of profits.

Prima Facie Unconscionable

A term describing terms or agreements that appear to be shockingly unfair or unjust on the face of it.

Consumer Goods

Items produced for personal or household use, typically not intended for resale or further production.

Commercial Losses

Financial losses experienced by a business entity due to various factors such as theft, damage, or unfavorable business conditions.