Which of the following statements is correct?
A) The purchase requisition is the form sent to a supplier to order goods.
B) The credit terms, 2/10, n/30, allow the customer to take a 2 percent discount if payment is made within 10 days of the invoice, otherwise payment is due in full in 30 days.
C) To the customer, a supplier's invoice is a purchase order invoice.
D) The Purchases account is reported as an asset on the balance sheet.
Correct Answer:
Verified
Q1: A purchase of merchandise for cash should
Q3: The Purchases account is:
A)a temporary account.
B)a liability
Q4: The supplier's invoice is the source document
Q5: The Purchases Returns and Allowances account has
Q6: To show that the totals of the
Q7: At the end of the accounting period
Q8: The use of a purchases journal strengthens
Q9: The entry to record the return of
Q10: After a supplier of merchandise is selected,
Q11: The abbreviation P1 in the Posting Reference
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