Assume That a Perpetual Inventory System Is in Use

question 3

Multiple Choice

Assume that a perpetual inventory system is in use.Which of the following statements regarding the journal entries prepared is correct?

• A)"Freight-out" or delivery costs associated with sales should be included in Cost of Goods Sold.
• B)When a company receives payment from a customer for a sale,Cash is debited and Accounts Payable is credited.
• C)When a company grants an allowance to a customer,Inventory is credited when using a perpetual inventory system.
• D)When a customer returns inventory,the seller debits Sales Revenue (or Sales Returns & Allowances)under a perpetual inventory system.

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Definitions:

P-value

The probability of observing a statistical summary (for example, the difference in means between two groups) at least as extreme as the one observed, under the assumption that the null hypothesis is true.

Null Hypothesis

A proposition in statistics that implies no association or difference between groups or variables.

Alternative Hypothesis

A statement that directly contradicts the null hypothesis by stating there is a statistically significant effect or difference.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect, serving as a default position that there is no relationship between two measured phenomena.