Ask Question
18 October, 13:07

Assume the following data concerning a purchase of merchandise by Icon Co. on April 2:

April 2.

Purchased $4,000 of merchandise on account from Gamma Co., terms 2/10, n/30.

4. Returned $2,000 of the merchandise purchased on April 2.

12. Paid for the purchase of April 2 less the return and discount.

The purchase amount that Icon Co. would record on April 2 would be

$3,200.

$3,920.

$4,000.

None of these choices are correct.

+2
Answers (1)
  1. 18 October, 15:59
    0
    Correct answer is $4,000

    Explanation:

    During the purchase on April 2, Icon Co. should recognize the gross amount of $4,000 purchases. Unless it is clearly stated in the problem that Icon Co. uses net method in recording discounts, said discount will be recognized and recorded upon payment of the purchases that falls into the discounted period of contract. Purchase returns will be recognized on the day the company made it.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Assume the following data concerning a purchase of merchandise by Icon Co. on April 2: April 2. Purchased $4,000 of merchandise on account ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers