C & S Company Purchased 80 Keyboards for $15 Each

question 82

Multiple Choice

C & S Company purchased 80 keyboards for $15 each from Keyboards-for-Less. When they unpacked the keyboards, C & S found that 30 of the keyboards were damaged in shipping. What is the journal entry that C & S will make to record the purchase return?

• A)Debit Purchase Returns and credit Inventory, $1,200.
• B)Debit Accounts Payable - Keyboards-for-Less and credit Inventory, $1,200.
• C)Debit Purchase Returns and credit Inventory, $450.
• D)Debit Accounts Payable - Keyboards-for-Less and credit Inventory, $450.

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Definitions:

Vertical Demand Curve

A vertical demand curve is a theoretical representation where the quantity demanded is completely insensitive to price changes, indicating that consumers are willing to buy the same amount regardless of the price.

Elasticity

A measure of how much the quantity demanded or supplied of a good or service changes in response to a change in price, income, or other factors.

Perfectly Elastic

A situation in demand or supply where the quantity demanded or supplied changes by an infinite amount in response to any change in price.

More Elastic

Referring to a greater sensitivity of quantity demanded or supplied to changes in price, compared to goods or services with less elasticity.