1. Which of the following statements regarding cash purchases discounts from suppliers is/are correct? (1) they are reductions in retail prices by manufacturer (2) they are revenues of the entity (3) the cash account is debited when they are received by the entity A. 2 only B. 3 only C. 1 and 2 only D. 1 and 3 only 2. ABC Company bought merchandise from Runnex 36,500 terms 3/10, n/6p. What js the journal entry assuming it was paid within the discount period? 3. What will be the entry when the company cash purchases amounting 13,440? 4. Strange company purchases merchandise from Collius Co. 95,000 terms 2/10, n/60 eith trade discounts of 5%. What is the entry of the transaction?
1. Which of the following statements regarding cash purchases discounts from suppliers is/are correct?
(1) they are reductions in retail prices by manufacturer
(2) they are revenues of the entity
(3) the cash account is debited when they are received by the entity
A. 2 only
B. 3 only
C. 1 and 2 only
D. 1 and 3 only
2. ABC Company bought merchandise from Runnex 36,500 terms 3/10, n/6p. What js the
3. What will be the entry when the company cash purchases amounting 13,440?
4. Strange company purchases merchandise from Collius Co. 95,000 terms 2/10, n/60 eith trade discounts of 5%. What is the entry of the transaction?
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