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1. TF.06-024 A buyer who take ad ae quires merchandise under credit terms of 1/1

ID: 2600560 • Letter: 1

Question

1. TF.06-024 A buyer who take ad ae quires merchandise under credit terms of 1/10, n/30 has 30 days after the invoice date to vantage of the sales discount True False 2. TF.06-025 acco perpetual inventory system, merchandise returned to vendors reduces the merchandise inventory True False /10, n/30. The entry Under the perpetual inventory system, a company purchases merchandise on terms 2 to record the purchase will include a debit to Cash and a credit to Sales. 3. TT,06-026 True False 4. TF.06-028 When the seller offers a sales discount, even if borrowing has to be done, it is generally advantageous for the buyer to pay within the discount period. True False

Explanation / Answer

1. False.

He has only 10 days to take the discount.

2.True.

3. False.

Debit to Merchandise Inventory, Credit to Accounts Payable

4. True.