Assuming That the Net Price Method of Recording Purchases Is

question 39

Multiple Choice

Assuming that the net price method of recording purchases is used and that the business uses the perpetual method of inventory recording, the correct entry to record the purchase of goods for $5000 on credit, with terms of 2/10, n/30 is: (ignore GST) .

• A) DR Inventory $5000; CR Accounts payable $5000
• B) DR Inventory $4900; CR Accounts payable $4900
• C) DR Inventory $4900; DR Discount allowed $100: CR Accounts payable $5000
• D) DR Purchases $5000; CR Accounts payable $4900; CR Discount allowed $100

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Definitions:

Emojis

Digital icons used to express emotions, ideas, or concepts in electronic communications, adding tone and context to messages.

Expressive Punctuations

The use of punctuation marks, like exclamation points or emoticons, to convey emotion or tone in writing.

Expressive Emotions

The outward demonstration or expression of feelings, which can include facial expressions, body language, and other forms of non-verbal communication.

Capital Letter Communications

The use of capital letters to emphasize or highlight certain parts of a written communication, often interpreted as shouting in digital contexts.