Question

Alison's dress shop buys dresses from McGuire Manufacturing. Alison purchased dresses from McGuire on July 17 and received an invoice with a list price amount of $6,000 and payment terms of 1/10, n/30. Alison uses the net method to record purchases. Alison should record the purchase at: Group of answer choices

Answer 1

Answer:

$5,940

Explanation:

Purchase under Net method:

= Gross profit - Discount

= $6,000 - (1% of $6,000)

= $6,000 - $60

= $5,940

Therefore, Alison should record the purchase at $5,940.