Emerald Co

question 61

Multiple Choice

Emerald Co. uses a perpetual inventory system and records purchases of goods at net cost. The company recently purchased 200 compact discs at an invoice price of $6,000 and terms of 2/10, n/30. Half of these discs had been mislabeled and were returned immediately to the supplier. The journal entry to record payment of this invoice after the discount period has expired will include a:

• A) Debit to Inventory for $3,000.
• B) Credit to Cash for $3,000.
• C) Debit to an expense account for $60.
• D) Credit to Cash for $2,940.

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Definitions:

Business Plans

Detailed documents that outline the operational and financial objectives of a business, including strategy, market research, and financial forecasts.

Back-Of-The-Napkin

An informal approach to problem-solving or idea generation, utilizing simple sketches or calculations made quickly, often on a napkin or similar surface.

Rough Draft

An initial version of a document or project that allows creators to explore ideas and structure before refining and finalizing their work.

Blueprint

A detailed plan or design of a project or object, often used in architecture and engineering to guide construction.