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e-lub [12.9K]
2 years ago
11

A company purchases inventory on account for $45,000 with terms 2/10, n/30. Under the net method of accounting for purchases, th

e purchase would be recorded at:_______
a. $36,000.
b. $40,500.
c. $45,000.
d. $44,100.
Business
1 answer:
taurus [48]2 years ago
8 0

Answer:d. $44,100.

Explanation:

The net method is a way a company or firm records its customer's invoice. Under the net method of Accounting for purchases,  The record of purchases are recorded considering  the cash discount.

Therefore

Purchase price = $45000

Cash Discount  at terms  2/10 n/30

$45000  x  2% =  $45,000 x 0.02 =$900

Net purchase price = $45000 - $900 = $44,100.

The journal to record the inventory purchased on account using the  net method  will be

Accounts  Titles                             Debit             Credit

Inventory                                 $44,100.  

Accounts payable                                              $44,100.

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