What Is the Net Method of Recording Purchases

Multiple Choice

What is the net method of recording purchases?

A) A purchase is originally recorded at its full amount with any cash discount taken recorded as a reduction to inventory at a later date.
B) A purchase is originally recorded at its full amount less any available cash discount.
C) A purchase is originally recorded at its full amount plus any available cash discount.
D) A purchase is originally recorded at its full amount with any cash discount taken recorded as an increase to inventory at a later date.
E) A purchase is originally recorded to a purchase discounts lost account with any cash discount taken recorded as a reduction to inventory at a later date.