Select the best answer for the question.7. Company A records purchases using the net price method. It an item is purchased from a supplier for $800 on terms of 3/10, n/30, the correct accounting entry would beO A.Purchases776Purchase Discounts 24Accounts PayableOB.PurchasesAccounts PayableO.C.PurchasesDAccounts PayableOD.Accounts Payable776800PurchasesPurchase Discounts800<< Previous Question77680080077624O Mark for review (Will be highlighted on the review page)Next Question >>

Under the net method, purchases are recorded at the discounted price. Purchase discount is not…

7. Company A records purchases using the net price method. It an item is purchased from a supplier for $800 on terms of 3/10, n/30, the correct accounting entry would be O A. Purchases 776 Purchase Discounts 24 Accounts Payable SOB. Purchases Accounts Payable 776 O.C. Purchases to 776 Accounts Payable 800 800 Purchases Purchase Discounts 800 COD. Accounts Payable 800 776 24

7. Company A records purchases using the net price method. It an item is purchased from a supplier for $800 on terms of 3/10, n/30, the correct accounting entry would be O A. Purchases 776 Purchase Discounts 24 Accounts Payable SOB. Purchases Accounts Payable 776 O.C. Purchases to 776 Accounts Payable 800 800 Purchases Purchase Discounts 800 COD. Accounts Payable 800 776 24

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 24MC: Which of the following accounts are used when recording a purchase using a periodic inventory...

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Which of the following accounts are used when recording a purchase using a periodic inventory system? A. cash, purchases B. accounts payable, sales C. accounts payable, accounts receivable D. cash, merchandise inventory
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