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:

Job Performance

The measure of how well an individual carries out their tasks, responsibilities, and objectives in their employment.

Cognitive Ability

The capacity to perform higher mental processes of reasoning, remembering, understanding, problem solving, and decision making.

Big Five Personality Variables

A model that describes human personality through five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Emotional Intelligence

is the ability to recognize, understand, manage, and use emotions effectively in oneself and in relationships with others.