The Journal Entry to Record the Purchase of Inventory on Account

question 96

Multiple Choice

The journal entry to record the purchase of inventory on account under the periodic inventory system is:

• A)debit Inventory and credit Accounts Payable.
• B)debit Purchases and credit Accounts Payable.
• C)debit Cost of Goods Sold and credit Accounts Payable.
• D)debit Inventory and credit Cost of Goods Sold.

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Definitions:

Substantial Probability

means a significant likelihood of an event occurring, used in various contexts to assess risks or outcomes.

Serious Physical Harm

Significant or severe injury to the body that can result in lasting physical damage or impairment.

Standard Precautions

A set of infection control practices used to prevent transmission of diseases that can be acquired by contact with blood, body fluids, non-intact skin, and mucous membranes.

OSHA

An agency within the U.S. government, the Occupational Safety and Health Administration is dedicated to maintaining and ensuring safety and health standards at work.