ACC 304 All Assignments ACC 304 All Assignments | Page 95

1. Recording purchases at gross amounts
2. Recording purchases at net amounts, with the amount of discounts
not taken shown under "other expenses" in the income statement
a. 1
b. 2
c. Either 1 or 2 will result in the same net income.
d. Cannot be determined from the information provided.
58. When using the periodic inventory system, which of the
following generally would not be separately accounted for in the
computation of cost of goods sold?
a. Trade discounts applicable to purchases during the period