Martin Corporation used the gross method of recording purchases,the voucher system and the periodic inventory method.A purchase of $6,000,2/15,n30 would be recorded as:
A)debit Purchases $6,000;credit Accounts Payable $6,000.
B)debit Purchases $6,000;credit Vouchers Payable $6,000.
C)debit Purchases $5,880;credit Accounts Payable $5,880.
D)debit Purchases $5,880;credit Vouchers Payable $5,880.

Question

Quizplus · Accepted Answer

Under the gross method, purchases are recorded at the full invoice price. Since Martin Corporation uses the voucher system, the credit entry is to Vouchers Payable.

Martin Corporation Used the Gross Method of Recording Purchases,the Voucher