Polk Company Uses a Perpetual Inventory System and Had the Following

question 9

Multiple Choice

Polk Company uses a perpetual inventory system and had the following transactions during November: November 6-Purchased $8,700 of inventory on account,terms 2/10,n/30.
November 8-Returned $1,200 of defective units and received full credit.
November 15-Paid the amount due.
What journal entry will be recorded by Polk Company on November 6?

• A)Debit Inventory and credit Accounts Payable for $8,700.
• B)Debit Cost of Goods Sold and credit Accounts Payable for $8,526.
• C)Debit Purchases and credit Accounts Payable for $8,700.
• D)Debit Inventory and credit Accounts Payable for $8,526.

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Definitions:

Test Statistic Value

A value derived from sample data during a hypothesis test, used to determine whether to reject the null hypothesis within the context of the test.

Significance Level

The threshold under which the p-value falls to reject the null hypothesis, typically set at 0.05 or 5%.

Critical Value

A threshold in a statistical test that defines the boundary between where a statistical hypothesis would be considered significantly different or not.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, to be tested against the alternative hypothesis.