Fact Pattern B - Questions #6 through #9: The Purchaser is paying an account payable of...
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Fact Pattern B - Questions #6 through #9: The Purchaser is paying an account payable of $5,000 for previously purchased merchandise with cash and taking advantage of a 10% discount (10/10 - n/30) offered by the Seller for early payment. Question #6. Under the perpetual method of accounting for inventories, consider the journal entry for the transaction in Fact Pattern B, above, from the Purchaser's perspective, assuming the Purchaser is entitled to the discount for early payment. The Purchaser will: a. Debit Account Receivable for $5000. b. Debit Account Payable for $4500. C. Credit cash for $5000. d. Credit Inventory $500. Question #7. Under the periodic method of accounting for inventories, consider the journal entry for the transaction in Fact Pattern B, above, from the Purchaser's perspective, assuming the Purchaser is entitled to the discount for early payment. The Purchaser will: a. Debit Account Receivable for $5000. b. Debit Account Payable for $5000. C. Credit cash for $5000. d. Credit Purchase Discount $4500. Question #8. Under the pericdic method of accounting for inventories, consider the journal entry for the transactionrt in Fact Pattern B, above, from the Seller's perspective, assuming the Purchaser is entitled to the discount for early payment. The Seller will: a. Credit Account Receivable for $5000. b. Debit Account Payable for $4500. C. Debit cash for $5000. d. Debit Sales Discount $5000. Question #9. Under the perpetual method of accounting for inventories, consider the journal entry for the transaction in Fact Pattern B, above, from the Seller's perspective, assuming the Purchaser is entitled to the discount for early payment. The Seller will: a. Credit Account Payable for $5000. b. Credit Account Receivable for $4500. C. Debit cash for $5000. d. Debit Sales Discount $500. Fact Pattern B - Questions #6 through #9: The Purchaser is paying an account payable of $5,000 for previously purchased merchandise with cash and taking advantage of a 10% discount (10/10 - n/30) offered by the Seller for early payment. Question #6. Under the perpetual method of accounting for inventories, consider the journal entry for the transaction in Fact Pattern B, above, from the Purchaser's perspective, assuming the Purchaser is entitled to the discount for early payment. The Purchaser will: a. Debit Account Receivable for $5000. b. Debit Account Payable for $4500. C. Credit cash for $5000. d. Credit Inventory $500. Question #7. Under the periodic method of accounting for inventories, consider the journal entry for the transaction in Fact Pattern B, above, from the Purchaser's perspective, assuming the Purchaser is entitled to the discount for early payment. The Purchaser will: a. Debit Account Receivable for $5000. b. Debit Account Payable for $5000. C. Credit cash for $5000. d. Credit Purchase Discount $4500. Question #8. Under the pericdic method of accounting for inventories, consider the journal entry for the transactionrt in Fact Pattern B, above, from the Seller's perspective, assuming the Purchaser is entitled to the discount for early payment. The Seller will: a. Credit Account Receivable for $5000. b. Debit Account Payable for $4500. C. Debit cash for $5000. d. Debit Sales Discount $5000. Question #9. Under the perpetual method of accounting for inventories, consider the journal entry for the transaction in Fact Pattern B, above, from the Seller's perspective, assuming the Purchaser is entitled to the discount for early payment. The Seller will: a. Credit Account Payable for $5000. b. Credit Account Receivable for $4500. C. Debit cash for $5000. d. Debit Sales Discount $500.
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Answer 6 option d Because purchase discount will reduce inventory directly in perpetual accounting ... View the full answer
Related Book For
Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
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