Based on the following information, what would be recorded as purchases discount if the invoice is paid within the discount period?1.$5,000 of merchandise inventory was ordered on April 2, 20Y8.2.$2,000 of this merchandise was received on April 5, 20Y8.3.On April 6, 20Y8, an invoice dated April 4, 20Y8, with terms of 2/10, net 30 for $2,150, which included a $150 prepaid freight cost, was received.4.On April 10, 20Y8, $500 of the merchandise was returned to the seller.a.$33b.$30c.$43d.$100

Purchase discount is calculated on the net value and does not include the fright paid and purchase…

Answered: Based on the following information,…

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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Based on the following information, what would be recorded as purchases discount if the invoice is paid within the discount period?

1.	$5,000 of merchandise inventory was ordered on April 2, 20Y8.
2.	$2,000 of this merchandise was received on April 5, 20Y8.
3.	On April 6, 20Y8, an invoice dated April 4, 20Y8, with terms of 2/10, net 30 for $2,150, which included a $150 prepaid freight cost, was received.
4.	On April 10, 20Y8, $500 of the merchandise was returned to the seller.

a.$33

b.$30

c.$43

d.$100

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