FAD Company Uses a Periodic Inventory System and Its Inventory

question 153

Multiple Choice

FAD Company uses a periodic inventory system and its inventory records for the period contain the following information: The journal entry necessary at the end of the period to transfer beginning inventory and net purchases to cost of goods sold will include which of the following?

• A)Credit Inventory for $6,250.
• B)Debit Purchases for $11,250.
• C)Debit Inventory for $6,250.
• D)Debit Cost of Goods Sold for $11,250.

---

Definitions:

Grassroots Amendment

An alteration or addition to a constitution or law proposed or initiated by citizens or lower-level organizations rather than government officials.

Referendum

A referendum is a direct vote in which an electorate is asked to either accept or reject a particular proposal, which can be a new law, a policy change, or a constitutional amendment.

Recreational Marijuana

Cannabis used for enjoyment rather than for medical purposes, legalized in some jurisdictions under specific regulations.

Law Passed

The successful enactment of a bill into law after it has been approved by the legislative body and, usually, the head of the government.