The Entry to Record a Purchase of $12,000 in Merchandise

question 85

Multiple Choice

The entry to record a purchase of $12,000 in merchandise assuming terms of 2/10,n/30 and a periodic inventory system would include a(n)

• A)increase to Accounts Payable for $12,000.
• B)increase to Purchases Discounts for $240.
• C)decrease to Purchases for $12,000.
• D)decrease to Accounts Payable for $11,760.

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Definitions:

Mickey Mouse Watch

A wristwatch featuring Mickey Mouse, often characterized by the iconic Disney character's arms serving as the timepiece's hands.

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A piece of jewelry consisting of pearls strung together.

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A long dress that reaches the floor, often worn on formal occasions such as weddings or galas.

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A television set that can display images in color, as opposed to black and white.