FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

When using a perpetual inventory system, why are discounts credited to Inventory? The discounts are debited to discount expense and thus the credit has to

image text in transcribed
When using a perpetual inventory system, why are discounts credited to Inventory? The discounts are debited to discount expense and thus the credit has to be made to merchandise inventory. The discounts reduce the cost of the inventory. The discounts are a reduction of business expenses. None of these answers choices are correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

IRS Audit Protection And Survival Guide Bed And Breakfasts

IRS Audit Protection And Survival Guide Bed And Breakfasts

Authors: Gerald F. Bernard, Daniel J. Baran

1st Edition

0471166340, 978-0471166344

More Books

Students also viewed these Accounting questions

Question

★★★★★
Use the information from the Fun Time Cruiseline Data Set. 1. Suppose Fun Time Cruiseline cuts its dinner cruise ticket price from $50 to $45 to increase the number of passengers. Compute the new...

Answered: 1 week ago

Question

★★★★★
Search the Internet for organisational structures. You should try a number of organisations including governmental and charity organisations. Some useful examples of organisational structure are...

Answered: 1 week ago

Question

★★★★★
=+2. Working as a class, decide on a reasonable way to collect data on the two variables of interest.

Answered: 1 week ago

Question

★★★★★
Sensitivity Analysis and Break-Even We are evaluating a project that costs $936,000, has an eight-year life, and has no salvage value . Assume that depreciation is straight-line to zero over the life...

Answered: 1 week ago

Question

★★★★★
When using a perpetual inventory system, why are discounts credited to Inventory? The discounts are debited to discount expense and thus the credit has to be made to merchandise inventory. The...

Answered: 1 week ago

Question

★★★★★
30. The following data have been recorded for recently completed Job 323 on its job cost sheet. Direct materials cost was $2,117. A total of 34 direct labor-hours and 224 machine-hours were worked on...

Answered: 1 week ago

Question

★★★★★
Problem 2-20 (Algo) Plantwide versus Multiple Predetermined Overhead Rates: Service Industry (LO2-1, LO2-2, LO2-3, LO2-4] McCullough Hospital uses a job-order costing system to assign costs to its...

Answered: 1 week ago

Question

★★★★★
Year end is 31 December. XYZ decided to change the method of valuation of raw materials from the weighted average cost method to FIFO. Change In accounting policy has been accounted for during the...

Answered: 1 week ago

Question

★★★★★
Civil Legal Tradition and Protecting Identities Thread : The civil legal tradition begins to do something very specific that the chthonic legal tradition didn't, protect identities. Briefly explain...

Answered: 1 week ago

Question

★★★★★
Case Title: Harvard Case Study: Codecademy Monetizing a Movement What are the main reasons behind Codecademy's rapid growth? What kind of monetization model should the company introduce in the future?

Answered: 1 week ago

Question

★★★★★
A list, in order of relative importance, of aspects (ie cost, technical requirements, production capability, management, past experience) of a proposal that the government evaluates to determine...

Answered: 1 week ago

Question

★★★★★
The Nature of Nonverbal Communication

Answered: 1 week ago

Question

★★★★★
Functions of Nonverbal Communication

Answered: 1 week ago

Question

★★★★★
Nonverbal Communication Codes

Answered: 1 week ago

Previous Question Next Question