The Journal Entry to Record the Purchase of Inventory Under

question 125

Multiple Choice

The journal entry to record the purchase of inventory under the perpetual system includes:

• A) a debit to Cost of Goods Sold and a credit to Merchandise Inventory.
• B) a debit to Merchandise Inventory and a credit to Accounts Payable or Cash.
• C) a debit to Accounts Receivable or Cash and a credit to Sales.
• D) Both A and C are correct.

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Definitions:

Plate Tectonics

The scientific theory explaining the movement of the Earth's lithosphere through processes such as spreading, subduction, and collision, which results in the formation of mountains, earthquakes, and volcanoes.

USGS Geologist

A scientist specializing in the study of the Earth and its processes, who works for the United States Geological Survey.

Oceanic Crust

The relatively thin part of the Earth's crust that underlies the ocean basins, composed of dense basaltic rock.

Seismic Tomography

A technique for imaging the Earth's interior by analyzing differences in the speed of seismic waves as they travel through different materials.