Although the Net Method Is Theoretically More Sound,most Companies Use

question 38

Essay

Although the net method is theoretically more sound,most companies use the gross method of accounting for cash discounts related to sales on account.Explain this statement.

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Definitions:

Tactile Corpuscle

A sensory receptor located in the dermal papillae, particularly sensitive to light touch; also referred to as a Meissner's corpuscle.

Dermal Papilla

A structure located at the base of the hair follicle that provides nutrients to the hair and contains capillaries and nerve endings.

Hypodermis

The hypodermis is the deepest layer of skin, located beneath the dermis, and is primarily made of fat and connective tissue.

Reticular Layer

The deeper layer of the dermis, made up of dense irregular connective tissue that provides skin with strength and elasticity.