The Journal Entry to Record the Purchase of Inventory Under

question 6

Multiple Choice

The journal entry to record the purchase of inventory under the perpetual system includes:

• A)a debit to Cost of Goods Sold and a credit to Merchandise Inventory.
• B)a debit to Merchandise Inventory;credit to Accounts Payable or Cash.
• C)a debit to Accounts Receivable or Cash and a credit to Sales.
• D)Both A and C are correct.