Hurricane Enterprises purchased $4,000 of merchandise on account,terms 2/10,n/30.Assuming Hurricane uses the gross price method to account for purchase discounts,and it pays for the merchandise on the 9th day after the invoice date,which of the following would not be used in either the acquisition of the merchandise or the payment of the invoice :

Question

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When using the gross price method, the full invoice amount is initially recorded. If the discount is taken, the accounts payable is debited for the full amount, and the discount is credited separately. Therefore, a debit to Accounts Payable for $3,920 would not be used.

Hurricane Enterprises Purchased $4,000 of Merchandise on Account,terms 2/10,n/30