The Journal Entry to Record a Purchase of Inventory for Cash

question 31

Multiple Choice

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

• A)a debit to Merchandise Inventory.
• B)a debit to Cash.
• C)a credit to Cash.
• D)Both A and C are correct.

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Definitions:

Technological Conditions

The state of available technology and its influence on a company's operations, capabilities, and industry environment.

Competition

A situation in which two or more parties strive for a goal that cannot be shared, such as a market that cannot support everyone.

General Environment

The broad external conditions that affect organizations and industries, including economic, legal, technological, and cultural factors.

Managerial Decision Making

The process by which managers select among available options to solve problems and take advantage of opportunities to achieve organizational goals.