Assume That the Net Price Method of Recording Purchases Is

question 34

Multiple Choice

Assume that the net price method of recording purchases is used and the business uses the perpetual method of inventory recording. Record the purchase of goods for $5000 on credit, on terms of 3/10, n/30. Ignore GST.

• A) Debit inventory $5000; credit accounts payable $5000
• B) Debit inventory $4850; debit discount allowed $150: credit accounts payable $5000
• C) Debit inventory $4850; credit accounts payable $4850
• D) Debit purchases $5000; credit accounts payable $4850; credit discount allowed $150

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Definitions:

Coniferous Forests

Forest ecosystems dominated by cone-bearing trees, such as pines and spruces, typically found in cooler and often drier regions.

Economic Importance

Economic importance refers to the value or significance of an organism, substance, industry, or activity in terms of generating income, employment, or contributing to the economy.

Produces Flowers

This refers to the ability of certain plants to generate flowers, which are the reproductive structures involving the production of seeds and fruits.

One Living Species

Refers to the concept of a species being the sole surviving member of its genus or family, often highlighting the vulnerability of such species to extinction.