A Company That Uses the Net Method of Recording Invoices

question 24

Multiple Choice

A company that uses the net method of recording invoices made a purchase of $400 with terms of 2/10, n/30. The entry to record the purchase would include:

• A) A debit to Merchandise Inventory for $392.
• B) A credit to Discounts Lost for $8.
• C) A credit to Cash for $392.
• D) A debit to Discounts Lost for $8.
• E) A debit to Cash for $392.

---

Definitions:

Controversial

Subject to public disagreement, debate, or dispute.

Friendships

Social connections between individuals, characterized by mutual affection, respect, and often a shared history or interests.

Dyadic

Relating to or involving two people, often in the context of a relationship or interaction.

Polyadic

Relating to or involving several or many individuals, often used to describe complex relationships or interactions.