The Entry to Record Payment of a $3,000 Purchase Within

question 16

Multiple Choice

The entry to record payment of a $3,000 purchase within the 2 percent discount period would include a(n)

• A)decrease to Accounts Payable for $2,940.
• B)increase to Purchases Discounts for $60.
• C)increase to Accounts Payable for $3,000.
• D)increase to Cash for $3,000.

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Definitions:

Price

The amount of money required to purchase a good or service, often determined by factors like demand, supply, and market competition.

Utility Function

A representation or model used in economics to quantify the satisfaction or happiness a consumer derives from consuming goods and services.

Income

Payment obtained, regularly, for services rendered or from capital investments.

Preferences

In economics, refers to the subjective tastes and desires of consumers that influence their choices and demands.