Which of the Following Would Require a Compound Journal Entry

question 98

Multiple Choice

Which of the following would require a compound journal entry?

• A) To record merchandise returned that was previously purchased on account.
• B) To record sales on account.
• C) To record purchases of inventory when a discount is offered for prompt payment.
• D) To record collection of accounts receivable when a cash discount is taken.

---

Definitions:

Standard Costs

Predetermined costs for products or services, used as benchmarks for evaluating actual performance and cost control.

Step-Down Method

An allocation method used in cost accounting to assign costs in a hierarchical manner, from the highest level down to the lowest.

Personnel Department

A division within an organization responsible for managing human resources, including recruitment, employment, and workplace culture.

Cost Allocated

Cost allocated refers to the process of distributing expenses in proportion to the cost centers or departments responsible for incurring them.