A Company Uses the Perpetual Inventory System and Recorded the Following

question 4

Multiple Choice

A company uses the perpetual inventory system and recorded the following entry: $\begin{array}{|c|c|c|}\hline \text { Merchandise Inventory } & 2,500 & \\\hline \text { Accounts Payable } & & 2,500 \\\hline\end{array}$ This entry reflects a:

• A)Purchase of merchandise on credit.
• B)Return of merchandise.
• C)Sale of merchandise on credit.
• D)Payment of the account payable less a 2% cash discount taken.
• E)Payment of the account payable less a 1% cash discount taken.

---

Definitions:

Quantify Costs

The process of determining, measuring, and expressing the costs of goods or services in numerical terms.

Controlling Quality

The process of ensuring that products and services meet customer expectations and comply with standards.

Failing to Control

A situation where an entity does not properly manage or regulate operations or processes.

Lean Manufacturing

A systematic method for waste minimization within a manufacturing setup without sacrificing productivity, focusing on enhancing value for the customer.