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

question 185

Multiple Choice

Merchandise with an invoice price of $2,000 was purchased on October 3, terms 1/15, n/60. The company uses the net method to record purchases. The entry to record the cash payment of this purchase obligation on October 17 is:

• A) Debit Accounts Payable $1,980; credit Cash $1,980.
• B) Debit Accounts Payable $2,000; credit Cash $2,000.
• C) Debit Accounts Payable $1,980; credit Discounts Lost $20; credit Cash $2,000.
• D) Debit Accounts Payable $2,000; credit Merchandise Inventory $20; credit Cash $1,980.
• E) Debit Accounts Payable $2,000; credit Merchandise Inventory $40; credit Cash $1,960.

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Definitions:

Source Address

In networking, it refers to the original sender's address in a packet of data, used for response or routing purposes.

J1939 Data Bus

A vehicle bus standard used for communication and diagnostics among vehicle components, primarily in heavy-duty trucks and buses.

Primary Modulation

Term used by Allison to describe the amount of ON time of an actuation signal.