Credit terms apply O a when the returns of merchandise are t

Credit terms apply O a. when the returns of merchandise are to be made. O b. when goods are sold. O c. when the payments for merchandise are to be made. O d. None of these choices are correct.

Solution

Credit Terms Apply:
C.wehn the payments for merchandise are to be made

Credit term 1/10 net 30
Credit term is effected when making the payment in order cheque whether to provide discount for early payment or charge the interest for delayed payment

The Adjusting entry for the loss of inventory due to shoplifting,employee theft or errors should be made to

B.Inventory Shrinkage

Inventory shrinkage=Inventory on the books-Physical inventory

Inventory shrinkage causes:
Theft,Spoilage,Obsolescence,Display,Damage