Under the net method, when a company uses a perpetual inventory system, an invoice for $2,000 with terms of 2/10, n/30 should be recorded with a debit to Merchandise Inventory and a credit to Accounts Payable of $2,000.

Question

Quizplus · Accepted Answer

Under the net method, the invoice should be recorded at the net amount, considering the discount. Therefore, it should be recorded as $1,960 ($2,000 - 2% discount).

Under the Net Method, When a Company Uses a Perpetual