Assume That a Company Records Purchases Net of Discount

question 82

Multiple Choice

Assume that a company records purchases net of discount.If the company bought merchandise valued at $15,000 on credit terms 3/15,net 30,the entry to record a payment for half of the purchase within the discount period would include a debit to

• A) Accounts Payable for $7,275 and a credit to Cash for $7,275
• B) Accounts Payable for $7,500 and a credit to Cash for $7,500
• C) Accounts Payable for $7,275 and to Interest Expense for $250,and a credit to Cash for $7,500
• D) Accounts Payable for $7,275 and to Interest Revenue for $250 and a credit to Cash for $7,500.

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Definitions:

Eye Color

The color of the iris, which can range widely among individuals, including blue, brown, green, and varying shades thereof.

Short-Term Memory

The capacity for holding a small amount of information in an active, readily available state for a short period of time.

Unlimited Capacity

A theoretical concept in which a system or process is considered to have no bounds or limits in its ability to hold or process information.

Long-Term Memory

A type of memory capable of storing large amounts of information for potentially unlimited durations, including facts, experiences, and skills.