Question: Explain the reason, thank you 46. When using a perpetual inventory system, why are discounts credited to Inventory? The discounts are debited to discount expense

Explain the reason, thank you 46. When using a

Explain the reason, thank you

46. When using a perpetual inventory system, why are discounts credited to Inventory? The discounts are debited to discount expense and thus the credit has to be made to merchandise inventory. The discounts reduce the cost of the inventory. The discounts are a reduction of business expenses. None of these answers choices are correct A) B) C) D)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

46. When using a perpetual inventory system, why are discounts credited to Inventory? A) The discounts are debited to discount expense and thus the credit has to be made to B) C) D merchandise...

When using a perpetual inventory system, why are discounts credited to Inventory? The discounts are debited to discount expense and thus the credit has to be made to merchandise inventory. The...

Photos - Screenshot Ring See all photos + Add to idt & Croat Share TRUE/FALSE. Write 'T' if the statement is true and 'F if the statement is false. 1) Accrual accounting records the effect of every...

can someone help if this answers are correct? I found out that some of this answers are not correct. Thank you Quiz 2 1. One advantage to using a perpetual inventory system is that the company never...

1 4 pts 100) Which of the following would NOT represent good controls over cash receipts? OD) Verify cash receipts by comparing the bank deposit slip with the accounting records. OA) Record all cash...

July 31-freight Delivery Expense Cash Date Account Debit Credit July 31-collection Cash Accounts Receivable-Landscapes Co. Date Account Debit Credit Aug. 3 Credit Card Expense Cash Date Account Debit...

Journalize the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used...

The following were selected from among the transactions completed by Harrison Company during November of the current year: Nov. 3 Purchased merchandise on account from Moonlight Co., list price...

PLEASE HELP!!!! mtakeAssignment/takeAssignmentMain.dehinoker&takeAsignmentSessionlocator assignment-takedinpeogress false Cakuaer ofook i Show Me Haw Purchase Related Transactions The Stationery...

8. Which of the following accounts has a normal debit balance? a. Accounts Payable b. Sales Returns and Allowances c. Sales d. Interest Revenue 9. Using a perpetual inventory system, the entry to...

In Problem 40, Infoworks believes its printer sales are also related to the average price of its printers. It has collected historical data on average printer prices for the past 10 years, as...

On July 1, Jones Corporation had the following capital structure: Common Stock, par $ 1; 8,000,000 authorized shares, 100,000 issued and outstanding.. $ 100,000 Additional Paid-in Capital 90,000...

Beta Company uses process costing to account for its manufacturing costs. Department A and Department B are its two manufacturing departments. Indirect material cost for Department B was $ 8 , 0 0 0...

A particle is moving in three dimensions and its position vector is given by; r(t) = (4, 4t + 2, 3t)i + (4, 5t - 2, 3)2 + (3, 3t + 3, 1t)k where r is in meters and t is in seconds. Determine the...