A Company That Uses the Perpetual Inventory System Purchases Inventory

question 89

Multiple Choice

A company that uses the perpetual inventory system purchases inventory for $61,000 on account,with terms of 3/10,n/30.Which of the following is the journal entry to record the payment made within 10 days?

• A)a debit to Accounts Payable for $61,000,a credit to Cash for $59,170,and a debit to Merchandise Inventory for $1,830
• B)a debit to Accounts Payable for $61,000,a credit to Merchandise Inventory for $1,830,and a credit to Cash for $59,170
• C)a debit to Merchandise Inventory for $1,830,a debit to Accounts Payable for $61,000,and a credit to Cash for $62,830
• D)a debit to Accounts Payable for $59,170,a debit to Merchandise Inventory for $1,830,and a credit to Cash for $61,000

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Definitions:

Parkinson's Disease

A progressive neurological disorder characterized by tremors, stiffness, and slow movement, caused by the degeneration of dopamine-producing neurons.

Synapses

The junctions between neurons where electrical or chemical signals are transmitted.

Synaptic Cleft

The small gap at the synapse through which neurotransmitters carry neural signals between neurons.

Terminal Buttons

The small knobs at the end of an axon that release chemicals called neurotransmitters into the synapse to transmit a neural message to another neuron.