For a Company Using a Perpetual Inventory System, the Journal

question 80

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.

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Definitions:

Sound System

A collection of electronic components designed to produce, amplify, and deliver audio signals.

Selling Price

The price at which an item is offered for sale to potential buyers.

PST

Provincial Sales Tax, a tax imposed by some Canadian provinces on the sale of goods and services.

Sweater Costing

The process of determining the production and associated costs of manufacturing a sweater.