Under the Periodic Inventory System, What Is the Correct Entry

question 37

Multiple Choice

Under the periodic inventory system, what is the correct entry to record the cost of the sale of 2 electric guitars sold to a customer at $550 per guitar including GST? (The guitars were originally purchased on credit at $250 each plus GST of $25 per guitar.)

• A) Debit purchases $1100; credit sales $1100
• B) Debit purchases $500; credit inventory $500
• C) Debit cost of sales $500; credit inventory $500
• D) The cost of each sale is not recorded under the periodic inventory system

Understand the concept of knowledge and the requirements for something to be considered knowledge.

Recognize the differences and similarities between rationalism and empiricism.

Identify common errors and biases in perception, memory, and cognition.

Assess the reliability and importance of evidence in forming beliefs and arguments.

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Definitions:

Hypophysis

Another term for the pituitary gland, a small, pea-sized gland located at the base of the brain, responsible for controlling various hormonal activities in the body.

Lethargic

A state of sluggishness, fatigue, or lack of energy, often as a result of illness or medical conditions.

Hyperkalemia

A condition characterized by an abnormally high concentration of potassium in the blood.

Androgen

A group of hormones that play a role in male traits and reproductive activity; examples include testosterone and androsterone.