For a Company Using a Perpetual Inventory System, the Journal

question 118

Multiple Choice

For a company using a perpetual inventory system, the journal entry to record the purchase of $3,500 of goods on account, with terms of 4/10, n/30, would include a

• A)debit to Accounts Payable of $3,500.
• B)credit to Accounts Payable of $3,360.
• C)debit to Inventory of $3,360.
• D)debit to Inventory of $3,500.

---

Definitions:

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a standardized classification of mental health conditions published by the American Psychiatric Association.

Mental Disorders

A wide range of conditions that affect mood, thinking, and behavior, often causing distress and difficulty in functioning.

Durham Rule

A legal standard for determining insanity, stating that an accused is not criminally responsible if the unlawful act was the product of mental disease or defect.

Insanity Defense

A legal defense by which a defendant claims they were unable to understand the nature or wrongfulness of their actions due to mental illness at the time of the criminal act.