Question

anne marie went to a merchandisers' market on january 6th and purchased 25 coffee tables at $62 each. the terms of payment of the invoice were 2% 10, net 30. when she returned to her office on january 10th, she wrote out and mailed a check to pay the invoice. what amount will anne marie record in her purchases account? $1,519 $1,804 $1,550 $1,835

Answer 1

The amount will Anne Marie records in her purchases account will be $1550.

What is Purchases Account?

The inventory purchases made by a company are tracked in the purchasing account, which is a general ledger account. In a periodic inventory system, this account is used to figure out how much inventory is available for purchase. In the chart of accounts, the purchases account is typically paired with the expense accounts for the income statement. The inventory available for sale is determined by adding the initial inventory to the total amount of purchased inventory throughout the course of a period under the periodic method. The cost of goods sold for the period is calculated by deducting the amount of inventory that is available for sale from the ending inventory valuation, which is determined by a physical count at the conclusion of the period.

The amount that Anne Marie will record in the purchases account is given by

= Number of coffee tables × per unit price

= 25 × 62

= 1550

To learn more about Purchases Account click,

https://brainly.com/question/27975123

#SPJ1