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:

pI

The isoelectric point of a molecule, which is the pH at which the molecule carries no net electrical charge.

Predominant Form

Predominant form refers to the most stable or commonly occurring form of a chemical species under given conditions.

L-Alanine

An enantiomer of the amino acid alanine, which is a key compound in the biosynthesis of proteins.

Aqueous Solution

A mixture in which water serves as the solvent.