The Entry to Record a Purchase of $6,000 in Merchandise

question 42

Multiple Choice

The entry to record a purchase of $6,000 in merchandise assuming terms of 2/10, n/30 and a periodic inventory system would include a(n)

• A) increase to Accounts Payable for $6,000.
• B) increase to Purchases Discounts for $120.
• C) decrease to Purchases for $6,000.
• D) decrease to Accounts Payable for $5,880.

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Definitions:

Tort

A civil wrong or breach of duty to another person, as outlined by law, which could constitute a lawsuit for damages.

Contractual Incapacity

Contractual incapacity refers to a person's legal inability to enter into a binding contract due to various reasons such as age, mental condition, or duress.

Infant

A child in the earliest period of life, particularly before they can walk; in legal contexts, often synonymous with a minor.

Adult

An individual who has reached the age of majority, legally recognized as capable of managing personal affairs and responsible for their actions.