Merchandise with an Invoice Price of $2,000 Was Purchased on February

question 12

Multiple Choice

Merchandise with an invoice price of $2,000 was purchased on February 3, terms 2/15, n/60. The company uses the gross method to record purchases and a perpetual inventory system. The entry to record a cash payment of this purchase obligation on February 17 is:

• A)Debit Accounts Payable $1,960; credit Cash $1,960.
• B)Debit Accounts Payable $2,000; credit Cash $2,000.
• C)Debit Accounts Payable $1,960; debit Discounts Lost $40; credit Cash $2,000.
• D)Debit Accounts Payable $2,000; credit Merchandise Inventory $40; credit Cash $1,960.
• E)Debit Accounts Payable $2,000; credit Discounts Lost $40; credit Cash $1,960.

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Definitions:

Shivering

An involuntary response to cold involving rapid, rhythmic muscle contractions to generate heat and increase body temperature.

Dysrhythmia

An abnormality in a physiological rhythm, especially in the activity of the brain or heart.

Ventricles

The two lower chambers of the heart that receive blood from the atria above them and pump it out to the lungs and body, crucial for the circulatory system.

PVCs

Premature Ventricular Contractions, early heartbeats originating from the ventricles, causing irregular heart rhythms.