When Merchandise Is Purchased on Account Under the Perpetual Inventory

question 86

Multiple Choice

When merchandise is purchased on account under the perpetual inventory system, the journal entry is:

• A) debit Purchases and credit Accounts Payable.
• B) debit Accounts Payable and credit Inventory.
• C) debit Inventory and credit Accounts Payable.
• D) debit Accounts Payable and credit Purchases.
• E) debit Purchases and credit Cash.

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Definitions:

Abdominal Ultrasound

A diagnostic imaging technique that uses high-frequency sound waves to produce images of the organs and structures inside the abdomen.

Foods

Substances consumed to provide nutritional support for the body, typically consisting of plant, animal, or fungal origin.

Fluids

Substances that have no fixed shape and yield easily to external pressure; gases or liquids.

Upper GI Series

A type of medical imaging that examines the upper part of the gastrointestinal tract.