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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: ____________

a. $3,200.
b. $3,920.
c. $4,000.
d. None of these choices are correct.

Respuesta :

anthougo

The purchase amount that Icon Co. would record on April 2 would be: c. $4,000.

What is the purchase amount to be recorded?

The purchase amount that should be recorded on the date of purchase is the amount of the transaction.  This does not take into account the return and discount which happened later.

This implies that Icon Co. will reduce the purchase amount on April 4 when half of the goods were returned with a contra entry.  And discount will be based on the balance of $2,000 instead of $4,000.

Data and Calculations:

Purchase on April 2 = $4,000

Purchases Return on April 4 = $2,000

Thus, the purchase amount that Icon Co. would record on April 2 would be: c. $4,000.

Learn more about recording credit purchases at https://brainly.com/question/5651500

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