A Company That Uses the Gross Method of Recording Purchases

question 229

Multiple Choice

A company that uses the gross method of recording purchases and a perpetual inventory system made a purchase of $400 with terms of 2/10, n/30. The entry to record the purchase would be:

• A)Debit Merchandise Inventory $392; credit Accounts Payable $392.
• B)Debit Merchandise Inventory $400; credit Accounts Payable $400.
• C)Debit Merchandise Inventory $392; credit Cash for $392.
• D)Debit Merchandise Inventory $392; debit Discounts Lost $8; credit Accounts Payable $400.
• E)Debit Accounts Payable $400; credit Discounts Lost $8; credit Cash $392.

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Definitions:

Shoot Apical Meristems

Regions at the tips of plant shoots that contain stem cells responsible for plant growth.

Plant Development

The process by which a plant grows and develops, governed by both genetic and environmental factors.

Grafting

A horticultural technique where tissues of plants are joined so as to continue their growth together, often used to propagate fruit trees or repair damaged plants.

Polyploidy

Condition of having three or more of each type of chromosome characteristic of the species.