The Entry to Record the Purchase on Account of Merchandise

question 78

Multiple Choice

The entry to record the purchase on account of merchandise for resale under the periodic inventory system includes

• A) debiting Purchases and crediting Cash.
• B) debiting Purchases and crediting Accounts Payable.
• C) debiting Merchandise Inventory and crediting Cash.
• D) debiting Merchandise Inventory and crediting Accounts Payable.

---

Definitions:

Due Dates

The specified dates by which something is to be completed or submitted.

Job Order

A work order issued for the production of a specific quantity of a product or the performance of a specific service.

Backward Scheduling

Scheduling that begins with the due date and schedules the final operation first and the other job steps in reverse order.

Short-Term Schedules

Timetables designed for managing and allocating resources and tasks over a short period, often to meet immediate production or service needs.