When Purchases of Merchandise Are Made on Account with a Perpetual

question 47

Multiple Choice

When purchases of merchandise are made on account with a perpetual inventory system, the transaction is recorded with which entry?

• A) debit Accounts Payable; credit Merchandise Inventory
• B) debit Merchandise Inventory; credit Accounts Payable
• C) debit Merchandise Inventory; credit Cash Discounts
• D) debit Merchandise Inventory; credit Purchases

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Definitions:

Interviewee

The person who is being interviewed.

Audio Recordings

Digital or analog created recordings of sound, often used as evidence in court or for personal and professional documentation.

Background Noise

Ambient sound that is present in a scene or environment but is not the focus of attention.

Court

A governmental institution authorized to hear and decide legal disputes and administer justice within its jurisdiction.