Neco Model Questions Vol1 2025 Financial Accounting Question 26

Practice objective / multiple choice question 26 from the 2025 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2025 Financial Accounting Objective / Multiple Choice Easy Difficulty
Question 26 NECO_MODEL_QUESTIONS_VOL1 • 2025 • FINANCIAL_ACCOUNTING • objective

A business purchased inventory costing \(\text{₦}150,000\) on credit. The supplier gave a 5% discount on payment within 30 days, and freight charges of \(\text{₦}8,000\) were paid in cash at the time of purchase. Record the journal entry at the time of purchase.

Answer Options

A. Debit Inventory (₦158,000), Credit Accounts Payable (₦158,000)
Correct Answer B. Debit Inventory \(\text{₦}150,000\), Debit Freight‑in \(\text{₦}8,000\), Credit Accounts Payable \(\text{₦}158,000\)
C. Debit Inventory (₦150,000), Debit Freight‑in (₦8,000), Credit Cash (₦158,000)
D. Debit Inventory (₦150,000), Debit Discount Received (₦7,500), Credit Accounts Payable (₦157,500)
Correct Answer
B
Correct Option:
Debit Inventory \(\text{₦}150,000\), Debit Freight‑in \(\text{₦}8,000\), Credit Accounts Payable \(\text{₦}158,000\)

About This Question

This is Neco Model Questions Vol1 2025 Financial Accounting Question 26. It is one of the objective questions from the 2025 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Easy .

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