Assume that a company recordspurchases net of discount. If thecompany bought merchandise valuedat P10,000 on credit terms 3/15, net30, the entry to record a payment forhalf of the purchase within discountperiod would include a debit to *Accounts Payable for P4,850 and a credit toCash for P4,850Accounts Payable for P5,000 and a credit toCash for P5,000Accounts Payable for P4,850 and toO Interest Expense for P150 and a credit toCash for P5,000Accounts Payable for P4,850 and toO Interest Revenue for P150 and a credit toCash for P5,000

Accounts payable will be recorded as net of discount as purchases are recorded net of discount. The…

Assume that a company records purchases net of discount. If the company bought merchandise valued at P10,000 on credit terms 3/15, net 30, the entry to record a payment for half of the purchase within discount period would include a debit to

Assume that a company records purchases net of discount. If the company bought merchandise valued at P10,000 on credit terms 3/15, net 30, the entry to record a payment for half of the purchase within discount period would include a debit to

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 13Q: If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the...

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Question

Assume that a company records
purchases net of discount. If the
company bought merchandise valued
at P10,000 on credit terms 3/15, net
30, the entry to record a payment for
half of the purchase within discount
period would include a debit to *
Accounts Payable for P4,850 and a credit to
Cash for P4,850
Accounts Payable for P5,000 and a credit to
Cash for P5,000
Accounts Payable for P4,850 and to
O Interest Expense for P150 and a credit to
Cash for P5,000
Accounts Payable for P4,850 and to
O Interest Revenue for P150 and a credit to
Cash for P5,000

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