Assume That a Company Records Purchases Net of Discount

question 142

Multiple Choice

Assume that a company records purchases net of discount. If the company bought merchandise valued at $10,000 on credit terms 3/15, n/30, the entry to record a payment for half of the purchase within the discount period would include a debit to:

• A) Accounts payable for $4,850 and a credit to cash for $4,850
• B) Accounts payable for $5,000 and a credit to cash for $5,000
• C) Accounts payable for $4,850 and to interest expense for $150, and a credit to cash for $5,000
• D) Accounts payable for $5,000 and to interest revenue for $150 and to cash for $4,850

Examine the historical and contemporary racial categorization and discrimination.

Identify the importance of exercise and its relation to health.

Appreciate the complexity of intelligence and its measurement.

Understand the role of genetics in lactose digestion and other biological processes.

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Definitions:

Sarbanes-Oxley Act

A U.S. federal law aimed at protecting investors from fraudulent accounting activities by corporations, enacted in 2002 in response to major corporate and accounting scandals.

Chief Financial Officer

A high-ranking executive responsible for managing the financial actions of a company, including financial planning, risk management, and financial reporting.

Annual Reports

Comprehensive reports issued yearly by companies to provide shareholders and other interested parties with detailed information on financial performance and operations.

Private Placement

The sale of securities or investment instruments directly to a select group of investors rather than through a public offering.