Polk Company Uses a Perpetual Inventory System and Had the Following

question 67

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 15?

• A)Debit Accounts Payable and credit Cash for $7,350
• B)Debit Accounts Payable for $7,500,credit Purchase Discount for $150,and credit Cash for $7,350
• C)Debit Accounts Payable for $7,500,credit Inventory for $150,and credit Cash for $7,350
• D)Debit Accounts Payable for $7,350,credit Inventory for $150,and credit Cash for $7,200

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Definitions:

Origins

The point or place where something begins, arises, or is derived; often used in reference to the beginning of the universe, life, or specific theories and ideas.

Noncontrol

A state or situation where there is no control or regulation.

Competence

The ability or capacity to perform a task effectively and efficiently.

Interact Effectively

The ability to communicate and work with others in a way that is productive and mutually beneficial.