5. A company records its purchases using the net method. On August 1, it purchases merchandise...
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5. A company records its purchases using the net method. On August 1, it purchases merchandise on account for $6,000 with terms of 2/10, n/30. The August 1 journal entry to record this transaction includes a Answer a. Debit to Merchandise Inventory for $6,000. b. Debit to Merchandise Inventory for $5,880. c. Debit to Merchandise Inventory for $120. d. Debit to Accounts Payable for $5,880. e. Credit to Accounts Payable for $6,000 5. A company records its purchases using the net method. On August 1, it purchases merchandise on account for $6,000 with terms of 2/10, n/30. The August 1 journal entry to record this transaction includes a Answer a. Debit to Merchandise Inventory for $6,000. b. Debit to Merchandise Inventory for $5,880. c. Debit to Merchandise Inventory for $120. d. Debit to Accounts Payable for $5,880. e. Credit to Accounts Payable for $6,000
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Answer option b Debit to Merchandise Inventory for 5880 Explanation Under the net method purc... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-0470239803
5th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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