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.

---

Definitions:

Charismatic Leadership

A style of leadership where the leader uses their charm and appeal to inspire and motivate followers, often evoking high levels of enthusiasm and commitment.

Quarterly Profits

The net earnings of a company calculated after all expenses and taxes, reported on a quarterly basis to provide insights into its financial health.

Organizational Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution or organization.

Financial Performance

A measure of how well a company can use assets from its primary mode of business and generate revenues.