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.

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Definitions:

Implicit Knowledge

Knowledge that is acquired and applied without conscious awareness, often in the form of skills or learned behaviors.

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The process of modifying existing technologies or adopting new ones to better suit the changing needs and objectives of a business or society.

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The state of being completely confident or having no doubt about something.

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A service industry that provides temporary vehicles for use by customers, typically on a short-term basis.