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Gabrielle Khodr
on Nov 15, 2024

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Martin Corporation used the gross method of recording purchases, the voucher system and the periodic inventory method. A purchase of $10,000, 2/15, n30 would be recorded as:

A) debit Purchases $10,000; credit Accounts Payable $10,000.
B) debit Purchases $10,000; credit Vouchers Payable $10,000.
C) debit Purchases $9,800; credit Accounts Payable $9,800.
D) debit Purchases $9,800; credit Vouchers Payable $9,800.

Gross Method

An accounting method for recording purchases of inventory at their full invoice prices without deducting any cash discounts offered.

Periodic Inventory Method

A system of inventory management and cost determination that updates the ending inventory balance and the cost of goods sold only at the end of an accounting period.

Purchases

Transactions involving the acquisition of goods or services for personal use, resale, or business operations.

  • Identify the variations between gross and net techniques for the notation of purchases and payments.
  • Comprehend the essential role and implementation of purchase discounts in accounting practices.
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Olivia BrzozowskiNov 16, 2024
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