Use the Following Information for Questions

question 9

Multiple Choice

Use the following information for questions.
Tehran Ltd.uses FIFO to cost its inventory.The following information is available for Tehran's inventory of product # 101:
-Assuming Tehran uses the perpetual inventory system, the entry to account for the March 1 purchase is

• A)debit Inventory and credit Accounts Payable, $875.
• B)debit Purchases and credit Accounts Payable, $875.
• C)debit Accounts Payable and credit Purchases, $875.
• D)debit Accounts Payable and credit Inventory, $875.

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Definitions:

Material Services

Significant or essential services provided that contribute directly to the output of the production process or operational efficiency.

Franchisor

An entity that grants the right to use a brand, product, or operational model to an individual or entity (franchisee), typically for a fee.

Bundled Sales

The practice of selling multiple products or services together as a single combined offering, often at a discounted rate.

Software Sales Arrangement

A commercial agreement detailing the terms of sale and licensing conditions for software products between vendors and customers.