Explain Answer and give true options. Tagging. General Account. Under the gross method, purchased discounts taken are:a. deducted from the purchased allowance.b. added to net purchases.c. added to interest income.d. deducted from inventory purchased.

The correct answer is:d. deducted from inventory purchased. Detailed Explanation:When using the…

Answered: Under the gross method, purchased…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter11A: The Net-price Method Of Recording Purchases

Section: Chapter Questions

Problem 1RQ: At what amount are purchases recorded under the net-price method?

See similar textbooks

Similar questions

Cost of goods available for sale is calculated by adding: A beginning inventory to net purchases and deducting ending inventory. B beginning inventory to the net purchases. © purchases to ending inventory. net purchases and freight-in.
a. Added to other income. whether taken or not b. Added to other income, only if taken Deducted from inventory, whether taken or not d. Deducted from inventory, only if taken C. accounted for in the computation of cost of goods sold? a. Trade discounts applicable to purchases b. Cash discounts taken- c. Purchase returns and allowances d. Cost of transportation for merchandise purchased 3. The use of purchase discount account implies that the recorded cost of a purchased inventory is a. Invoice price b. Invoice price plus any purchase discount lost c. Invoice price less the purchase discount taken d. Invoice price less the purchase discount allowable whether taken or not 4. The use of a discount lost account implies that cost of a purchased inventory is a. Invoice price b. List price c. Invoice price less the purchase discount taken d. Invoice price less the purchase discount allowable whether or not taken 5. The valuation of inventory on a prime cost basis a. Would achieve the same…
Cost of goods sold is given by: Select one: a. Net Purchases + beginning inventory - ending inventory. b. Net purchases + ending inventory - beginning inventory. c. Beginning inventory + accounts payable - net purchases. d. Beginning inventory - net purchases + ending inventory.
The sum of ending inventory and cost of goods sold isa. net purchases.b. beginning inventory.c. cost of goods available (or cost of goods available for sale).d. gross profit.
The uses of a Purchase Discounts Lost account implies that the recorded cost of a purchase inventory item is its A) invoice price B) invoice price plus the purchase discount lost. C) invoice price less the purchase discount taken D) invoice price less the purchase discount allowable whether taken or not.
The amount recorded for net cost of purchases includes all of the following EXCEPT: Purchase discounts. Freight costs paid by the seller. Returns and allowances. Freight costs paid by the buyer.
Using a perpetual inventory system, the purchase of inventory on account would be recorded as a. Debit Cost of Goods Sold; credit Inventory.b. Debit Inventory; credit Sales Revenue.c. Debit Purchases; credit Accounts Payable.d. Debit Inventory; credit Accounts Payable.
1. Net purchases equal the invoice amount and?a. plus freight-in, plus discountsb. less purchase returns, plus purchase allowancec. plus freight-in, less purchase discountsd. plus discounts, less purchase returns 2. Cost of Goods Sold is classified as which type of account?a. Assetb. Liabilityc. Revenued. Expense
In accountinf for sales discounts, most companies use the a. Allowance method b. Gross price method c. Discounted price method d. Net price method
Using a perpetual inventory system, the sale of inventory on account would be recorded as a. Debit Cost of Goods Sold; credit Inventory. b. Debit Inventory; credit Sales Revenue. c. Debit Accounts Receivable; credit Sales Revenue. d. Both a. and c. are correct.
Merchandise inventory is classified on the balance sheet as a a. current liability b. current asset c. long-term asset d. long-term liability
Gross profit is calculated as the difference between net sales revenue and ________. A. cost of merchandise inventory B. purchase expense C. cost of goods sold D. operating expenses

SEE MORE QUESTIONS

Recommended textbooks for you

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

Under the gross method, purchased discounts taken are: a. deducted from the purchased allowance. b. added to net purchases. c. added to interest income. d. deducted from inventory purchased.