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ABC Corp purchased goods on account from XYZ Corp for P10,000. Terms: 10%, 2/10, n/30 FOB Shipping point. Freight is P200, freight prepaid. If ABC uses the net method, the amount of inventory to be debited is: 10,000 X 10% X 2% 10,000 X 10% X 2% plus 200 10,000 X 90% X 98% 10,000 X 90% X 98% plus 200

ABC Corp purchased goods on account from XYZ Corp for P10,000. Terms: 10%, 2/10, n/30 FOB Shipping point. Freight is P200, freight prepaid. If ABC uses the net method, the amount of inventory to be debited is: 10,000 X 10% X 2% 10,000 X 10% X 2% plus 200 10,000 X 90% X 98% 10,000 X 90% X 98% plus 200

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Corp purchased goods on account from XYZ Corp for P10,000. Terms: 10%, 2/10, n/30 FOB Shipping point. Freight is P200, freight prepaid. If ABC uses the net method, the amount of inventory to be debited is:

10,000 X 10% X 2%
10,000 X 10% X 2% plus 200
10,000 X 90% X 98%
10,000 X 90% X 98% plus 200
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