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:

Polygraph

A machine used to detect and record changes in physiological processes such as heart rate, breathing, and perspiration, often used in lie detection.

Physiological Measurement

The process of recording biological activities, such as heart rate or brain activity, often used in psychological research to assess responses.

Lie-Detector Test

A technique that attempts to determine if someone is lying by measuring physiological responses, such as blood pressure, pulse, and skin conductivity.

Genetics

The branch of biology that studies genes, heredity, and genetic variation in living organisms.