A Company That Uses the Gross Method of Accounting for Purchases

question 19

Multiple Choice

A company that uses the gross method of accounting for purchases and a perpetual inventory system made a February 1 purchase of merchandise inventory on account for $7,300 with terms of 1/10, n/30. The February 1 journal entry to record this transaction would include a:

• A)Debit to Merchandise Inventory of $7,300.
• B)Debit to Merchandise Inventory of $7,227.
• C)Credit to Cash of $7,300.
• D)Credit to Merchandise Inventory of $73.
• E)Credit to Accounts Payable of $7,227.

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Definitions:

Rosa Parks

An African American civil rights activist known for refusing to give up her bus seat to a white person in Montgomery, Alabama, in 1955, an act that sparked the Montgomery Bus Boycott.

Brown V. Board Of Education

A landmark 1954 Supreme Court case that declared state laws establishing separate public schools for black and white students to be unconstitutional.

White South

A term referring to the American South's sociopolitical and cultural environment, highlighting its historical context of racial segregation and dominance by white Americans.