The Inventory Account Is Used in Each of the Following

question 90

Multiple Choice

The Inventory account is used in each of the following except the entry to record

• A) goods purchased on account.
• B) the return of goods purchased.
• C) payment of freight on goods sold.
• D) payment within the discount period.

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Definitions:

Retailers

Retailers are businesses or individuals that sell goods directly to consumers, acting as the final link between manufacturers and the consuming public.

Transportation

The action of moving goods or people from one place to another using vehicles, vessels, or other means.

Facilities

Physical buildings and structures that are used for the production of goods or delivery of services.

Accounts Receivable Turnover

A financial ratio indicating how quickly a company collects on the credit it extends to customers.