Which of the Following Statements Regarding Journal Entries Under a Perpetual

question 40

Multiple Choice

Which of the following statements regarding journal entries under a perpetual inventory system is true?

• A)"Freight-out" or delivery costs associated with sales should be included in the cost of goods sold amount.
• B)When a company receives payment from a customer for a sale,cash is debited and accounts payable is credited.
• C)When a company grants an allowance to a customer,inventory is credited when using a perpetual inventory system.
• D)When a customer returns inventory,the seller debits sales returns and allowances under a perpetual inventory system.

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Definitions:

Ethnography

A qualitative research method focused on the systematic study of people and cultures from the insider’s perspective, through observation and interviews.

Manufacturing Company

A business specialized in the production of goods using labor, machines, tools, and chemical or biological processing.

Geertz's

Referring to the work or theoretical contributions of Clifford Geertz, an American anthropologist known for his interpretative approach to culture.

Webs of Significance

A concept in cultural anthropology that signifies the intricate and interconnected symbols and meanings in a society.