Under the Net Method, When a Company Uses a Perpetual

question 103

True/False

Under the net method, when a company uses a perpetual inventory system, an invoice for $2,000 with terms of 2/10, n/30 should be recorded with a debit to Merchandise Inventory and a credit to Accounts Payable of $2,000.
$2,000 * 0.98 = $1,960

---

Definitions:

Psychoanalytic Theory

A theory of personality organization and the dynamics of personality development that guides psychoanalysis, developed by Sigmund Freud, focusing on unconscious motives and conflicts.

Superego

The part of the personality in Freudian psychoanalysis that is responsible for upholding moral standards and ideals acquired from parents and society, often in conflict with individual desires.

Conservative

A philosophical or political stance that emphasizes traditional values, stability, and resistance to change.

Projection

A defense mechanism where an individual ascribes their own unacceptable thoughts, feelings, or motives to another person.