A merchandiser purchases inventory on account under a periodic inventory system with terms of 2/10 n/30. The merchandiser would:
A)credit Inventory on date of payment if the discount is taken.
B)credit Inventory on date of payment if the discount is not taken.
C)credit Purchases Discounts on date of purchase if the discount is taken.
D)credit Purchases Discounts on date of purchase if the discount is not taken.

Question

Quizplus · Accepted Answer

Purchases Discounts is credited when the discount is taken.

A Merchandiser Purchases Inventory on Account Under a Periodic Inventory