Carolyn Company purchased $4,500 of merchandise with terms of 4/10,n/60 and paid the invoice within the discount period.If Brooke's uses the net method of recording merchandise purchases,the $180 purchases discount is:

Question

Quizplus · Accepted Answer

Under the net method, purchases are initially recorded net of the discount. Therefore, the discount is not recorded separately unless it is lost by not paying within the discount period.

Carolyn Company Purchased $4,500 of Merchandise with Terms of 4/10,n/60