Mack Industries Uses the Periodic Inventory System

question 88

Multiple Choice

Mack Industries uses the periodic inventory system. What is the entry to record a $450 merchandise purchase on account from Nickel Corporation?

• A) Debit Accounts Payable for $450; credit Sales for $450.
• B) Debit Purchases for $450; credit Accounts Payable for $450.
• C) Debit Purchases for $450; credit Merchandise Inventory for $450.
• D) Debit Merchandise Inventory for $450; credit Accounts Payable for $450.

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Definitions:

Coefficient of Determination

A statistical measure, often denoted as R-squared, that represents the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Independent Variable

A variable in an experiment or analysis that is manipulated or categorized to observe its effect on a dependent variable.

Dependent Variable

The variable in an experiment that is expected to change as a result of manipulations of the independent variable.

Hydroxide ions

Negatively charged ions made up of one oxygen and one hydrogen atom, symbolized as OH-.