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Hurricane Enterprises Purchased $4,000 of Merchandise on Account,terms 2/10,n/30

Question 11

Multiple Choice

Hurricane Enterprises purchased $4,000 of merchandise on account,terms 2/10,n/30.Assuming Hurricane uses the gross price method to account for purchase discounts,and it pays for the merchandise on the 9th day after the invoice date,which of the following would not be used in either the acquisition of the merchandise or the payment of the invoice :


A) credit to Cash for $3,920
B) credit to purchase discount for $80
C) debit to Accounts Payable for $3,920
D) debit to Purchase $4,000

Correct Answer:

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