A Company Purchased Inventory for $3,000 from a Vendor on Account,FOB

question 13

Multiple Choice

A company purchased inventory for $3,000 from a vendor on account,FOB shipping point,with terms of 2/10,n/30.The company paid $100 cash for freight in.The entry to record payment of invoice within 2 days by the purchaser would include ________.(Assume a perpetual inventory system. )

• A)a debit to Accounts Payable for $2,940 and a credit to Cash for $2,940
• B)a debit to Accounts Payable for $3,000,a debit to Merchandise Inventory for $100,and a credit to Cash for $2,900
• C)a debit to Accounts Payable for $3,000,a credit to Merchandise Inventory for $60,and a credit to Cash for $2,940
• D)a debit to Accounts Payable for $2,940,a debit to Merchandise Inventory for $60,and a credit to Cash for $3,000

---

Definitions:

Trigger Points

Specific conditions or events that initiate a particular action, reaction, or series of events.

Contingency Planning

The process of preparing for unexpected events by developing strategies to minimize impacts and continue operations.

Early Identification

The process of recognizing potential issues, opportunities, or conditions at an initial stage to allow for timely intervention.

Contingency Planning

The process of preparing for unforeseen events or circumstances to minimize their possible adverse effects.