A company purchased inventory for $2,200 on account, and recorded the following journal entry:
Merchandise Inventory 2,200
Accounts payable 2,200
The vendor's invoice showed terms of 3/10, n/30
Give the journal entry for the payment of the invoice 17 days after the invoice date.
What will be an ideal response
Accounts Payable 2,200
Cash 2,200
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Some analysts calculate the inventory turnover ratio by dividing sales, rather than cost of goods sold, by the average inventory. Which of the following regarding the inventory turnover ratio is/are not true?
a. Using sales in the numerator, will lead to incorrect measures of the inventory turnover ratio for calculating the average number of days that inventory is on hand until sale. b. As long as the ratio of selling price to cost of goods sold remains relatively constant, either measure will identify changes in the trend of the inventory turnover ratio. c. Using sales in the numerator, will lead to correct measures of the inventory turnover ratio for calculating the average number of days that inventory is on hand until sale. d. Choices a and b. e. None of the above.
The statement of cash flows may be used by management to
A) assess the liquidity of the business B) assess the major policy decisions involving investments and financing C) determine dividend policy D) do all of the above
The interest rate risk associated with Treasury bonds is much higher than with bills
Indicate whether the statement is true or false
Which of the following methods has a relatively low development cost?
A. mobile learning B. virtual reality C. adaptive training D. intelligent tutoring system