If a Company Is Using a Periodic Inventory System, Which $\quad 10,000$

question 60

Multiple Choice

If a company is using a periodic inventory system, which of the following entries is the correct journal entry to record the purchase of $10,000 of merchandise on account?
A. Dr. Inventory $\quad 10,000$
$\quad$ Cr. Accounts payable $\quad 10,000$
B. Dr. Inventory $\quad$ 10,000
$\quad$ Cr. Purchases $\quad$ 10,000
C. Dr. Purchases $\quad 10,000$
$\quad$ Cr. Inventory $\quad$ 10,000
D. Dr. Purchases $\quad 10,000$
$\quad$ Cr. Accounts payable $\quad$ 10,000

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Legal Relationship

A bond or connection established between entities or individuals by the force of law, encompassing various forms such as contractual, familial, or corporate ties.

Verbal Offer

A verbal offer is an oral proposal or agreement, not written, about a transaction or contract, which can sometimes be legally binding in certain contexts.

Bilateral Contract

A type of contract that involves mutual obligations, where each party to the contract is both a promisor and promisee.