On March 15, 20A, Jack Company purchased $5,000 of merchandise on credit subject to terms 2/10, n/20. Jack records its purchases using the gross amount. The periodic inventory system is used. If Jack pays for these goods on March 30, the entry made to record the payment should include which of the following?
A) Credit of $4,900 to cash.
B) Credit of $100 to Purchase discounts.
C) Debit of $4,900 to Trade payables.
D) Debit of $5,000 to Trade payables.
Correct Answer:
Verified
Q38: At the end of 20A, a $2,500
Q39: An increase in inventory turnover means, days
Q40: During a period of inflation, using the
Q41: On December 15, 20A, Toby Company accepted
Q42: Which of the following is true under
Q44: A $15,000 overstatement of the 20B ending
Q45: In order to determine cost of goods
Q46: Which of the following statements regarding inventories
Q47: A company recorded net purchases of $20.3
Q48: Joe Company sold merchandise with an invoice
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents