A company that uses the net method of recording purchases made a purchase of $400 with terms of 2/10, n/30. The entry to record the purchase would be: 38) A) Debit Merchandise Inventory $400; credit Discounts Lost $8; credit Accounts Payable $392. B) Debit Accounts Payable $400; credit Discounts Lost $8, credit Cash $392. C) Debit Merchandise Inventory $392; credit Accounts Payable $392. D) Debit Merchandise Inventory $392; debit Discounts Lost $8; credit Accounts Payable $400. E) Debit Merchandise Inventory $392; credit Cash for $392. 39) Assume that the custodian of a $450 petty cash fund has $62.50 in coins and currency 39) plus $382.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include: A) A debit to Cash for $387.50. B) A debit to Petty Cash for $382.50. C) A credit to Cash for $382.50 D) A debit to Cash for $377.50. E) A debit to Cash Over and Short for $5.00. 40) A company's warehouse contents were destroyed by a flood on September 12.The following information was the only information that was salvaged: 1. Inventory, beginning: $28,000 2. Purchases for the period: $17,000 3. Sales for the period: $55,000 4. Sales returns for the period: $700 The company's average gross profit ratio is 35%. What is the estimated cost of the lost inventory? A) S9,705. B) S44,000. C) $25,995. D)$45,000. E$29,250. 41) The internal document prepared to notify the appropriate persons that goods ordered have been received, describing the quantities and condition of the goods is the 41) A) Receiving report. B) Purchase order. C) Invoice. D) Purchase requisition. E) Invoice approval. 12