In a perpetual inventory system that uses the gross method which of the following is true?
A)When a discount is taken the Purchase Discount account is credited.
B)The Accounts Payable account is debited for the cash paid.
C)The Inventory account is reduced when the discount is taken.
D)The Purchase Discount Lost account is debited when the discount is not taken.

Question

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The Answer of In a perpetual inventory system that uses the gross method which of the following is true?
A)When a discount is taken the Purchase Discount account is credited.
B)The Accounts Payable account is debited for the cash paid.
C)The Inventory account is reduced when the discount is taken.
D)The Purchase Discount Lost account is debited when the discount is not taken.

In a Perpetual Inventory System That Uses the Gross Method