46. When using a perpetual inventory system, why are discounts credited to Inventory? A) The discounts...
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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 inventory. The discounts reduce the cost of the inventory. The discounts are a reduction of business expenses. None of these answers choices are correct. 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 inventory. The discounts reduce the cost of the inventory. The discounts are a reduction of business expenses. None of these answers choices are correct.
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ANSWER B The discounts reduce the cost of the inventory Trade and cash discounts are essential tools ... View the full answer
Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: ?978-0073379609
15th Edition
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
Posted Date:
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