A Company Using the Gross Method of Recording Purchases and a Perpetual

question 95

Multiple Choice

A company using the gross method of recording purchases and a perpetual inventory system failed to take advantage of a discount available. When it pays the amount of the invoice at the end of the credit period, the journal entry will include a debit to:

• A)Merchandise Inventory.
• B)Sales Discounts.
• C)Accounts Payable.
• D)Cash.
• E)Purchase Discounts.

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Definitions:

Exposure Therapy

A psychological treatment that involves confronting feared objects, situations, or memories to reduce fear and avoidance behaviors.

Obsessive-compulsive Disorder

is a mental health disorder characterized by persistent, unwanted thoughts (obsessions) and repetitive behaviors (compulsions) as an attempt to alleviate anxiety.

Antianxiety

Pertaining to drugs or treatments that reduce or alleviate anxiety.

Antianxiety Drugs

Medications used to treat symptoms of anxiety by affecting neurotransmitter activity in the brain to induce relaxation.