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During 2020, which was the first year of operations, Sheridan Company had merchandise purchases of...

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Accounting

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During 2020, which was the first year of operations, Sheridan Company had merchandise purchases of $992000 before cash discounts. All purchases were made on terms of 2/10, 1/30. Three-fourths of the items purchased were paid for within 10 days of purchase. All of the goods available had been sold at year end. Which of the following recording procedures would result in the highest cost of goods sold for 20207 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 01 2 Elther 1 or 2 will result in the same cost of goods sold Cannot be determined from the Information provided

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