A Company Records Purchases Using the Net Method

question 92

Multiple Choice

A company records purchases using the net method. On February 1, they purchased merchandise inventory on account for $8,300 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 $8,300.
• B) Debit to Merchandise Inventory of $8,217.
• C) Debit to Merchandise Inventory of $83.
• D) Credit to Merchandise Inventory of $83.
• E) Credit to Accounts Payable of $8,300.

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Definitions:

Moral Therapy

A psychological approach from the 19th century emphasizing humane treatment and moral discipline to rehabilitate mental illness, focusing on individual patient attention.

North America

A continent entirely within the Northern Hemisphere and almost all within the Western Hemisphere. It is bordered by the Arctic Ocean to the north, the Atlantic Ocean to the east, the Pacific Ocean to the west, and South America and the Caribbean Sea to the south.

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A facility specialized in the treatment and care of individuals with mental health disorders.

Moors

A term historically used to refer to Muslim inhabitants of the Maghreb, the Iberian Peninsula, Sicily, and Malta during the Middle Ages.