Author Question: Baylor Company purchased merchandise on account, 3,000, with terms 2/10, n/30 . The entry required ... (Read 523 times)

fahad · **on:** Jul 6, 2018

Baylor Company purchased merchandise on account, 3,000, with terms 2/10, n/30 . The entry required of Baylor Company to record the transaction in the cash payments journal, assuming payment is made within the discount period, is
a. debit Accounts Payable, 3,000; credit Sales Discounts, 60; credit Cash, 2,940.
b. debit Accounts Payable, 2,940; credit Cash, 2,940.
c. debit Accounts Payable, 3,000; credit Cash, 3,000.
d. debit Accounts Payable, 3,000; credit Purchases Discounts, 60, credit Cash, 2,940.
e. credit Accounts Payable, 3,000; credit Cash 3,000.

Question 2

Incurring construction costs on a major general government capital project would

a. Decrease fund balance in a Capital Projects Fund
b. Decrease cash in the General Capital Assets accounts
c. Increase capital assets in a Capital Projects Fund
d. Increase capital assets in the General Fund