Consider the following short case as you respond to the question: VLC Corporation sold merchandise with a cost of $200 on account for $300 to PRT Corporation; credit terms were 2/10, n/30.VLC paid the outgoing freight charge of $10.PRT paid the invoice within the discount period.Considering all entries VLC would make in its AIS to record all the preceding transactions, how many different income statement accounts would be involved?
A)Three
B)Four
C)Five
D)More than five

Question

Quizplus · Accepted Answer

Four income statement accounts would be involved. These accounts are Sales Revenue, Cost of Goods Sold, Freight-Out and Sales Discounts.

Consider the Following Short Case as You Respond to the Question