The net method of recording purchases refers to recording:
A) Specified amounts and timing of payments that a buyer agrees to in return for being granted credit.
B) Purchases at the invoice price less any cash discounts.
C) Inventory at the lower of cost or market.
D) Purchases at the full invoice price, without deducting any cash discounts.
E) Inventory at its selling price.

Question

Quizplus · Accepted Answer

The net method records purchases at the invoice price minus any cash discounts, assuming the discounts will be taken.

The Net Method of Recording Purchases Refers to Recording