23 Multiple-step income statements show a. gross profit but not income from operations b. either gross profit nor income from operations both gross profit and income from operations d. income from operations but not gross profit 24 What type of company would normally offer trade discounts to its customers? a. retailers b. service companies eonline retailers d. wholesalers 25. In credit terms of 3/15, n/60, the "3" represents the a. number of days in the discount period b. full amount of the invoice percent of the cash discount C. d number of days when the entire amount is due 26. Merchandise with a sales price of $5,000 is sold on account with terms 2/10, n/30. The journal entry to record the sale would include a a. debit to Cash for $5,000 debit to Merchandise Inventory for $100 credit to Sales for $4,900 debit to Accounts Receivable for $4,880 b. c. d. 27. Which inventory method is going to yield the highest net income in a period of rising costs? a. Average Cost b. c. FIFO LIFO None of the above d. 28. Nicks Sporting Goods purchases merchandise with a catalog list price of $30,000. The retailer receives a 30% trade discount and credit terms of 2/10, n/30. What amount should Nicks debit to the Merchandise Inventory account? a. $21,000 b. $20,580 c. $30,000 d. $29,400