The company uses the periodic inventory system and the voucher system.If the net method is applied,the purchase of $3,000 of merchandise with terms 2/10,n/30 is recorded by:
A)debit Cash $3,000;credit Accounts Payable $3,000.
B)debit Accounts Payable $3,000;credit Purchases $3,000.
C)debit Purchases $3,000;credit Accounts Payable $3,000.
D)debit Purchases $2,940;credit Vouchers Payable $2,940.

Question

Quizplus · Accepted Answer

Since the net method is applied, the purchase is recorded at the discounted price of 2% off ($3,000 x 2% = $60). Therefore, the entry would be debit Purchases $2,940 (=$3,000 - $60); credit Vouchers Payable $2,940. This is because the voucher system is used, which records purchases in a separate account (Vouchers Payable) before being paid.

The Company Uses the Periodic Inventory System and the Voucher