On December 3, Ter Company purchased inventory listed at P4,300 from Yup Corporation. Terms of the purchase were 3/10, n/20. Ter Company also purchased inventory from Yup Company on December 10 for a list price of P3,750. Terms of the purchase were 3/10, n/30. On December 16, Ter Company paid both suppliers for these purchases. If Ter Company uses the net method of recording purchases, the journal entry to record the payment on December 16 will include A debit to Accounts payable of P8,050 b. A debit to Purchase Discounts Lost of P129 c. A credit to Purchase Discounts of P112.50 d. A credit to Cash of P7,937.50 a.

On December 3, Ter Company purchased inventory listed at P4,300 from Yup Corporation. Terms of the purchase were 3/10, n/20. Ter Company also purchased inventory from Yup Company on December 10 for a list price of P3,750. Terms of the purchase were 3/10, n/30. On December 16, Ter Company paid both suppliers for these purchases. If Ter Company uses the net method of recording purchases, the journal entry to record the payment on December 16 will include A debit to Accounts payable of P8,050 b. A debit to Purchase Discounts Lost of P129 c. A credit to Purchase Discounts of P112.50 d. A credit to Cash of P7,937.50 a.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 4P

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