Flynn Company Uses a Perpetual Inventory System and Had the Following

question 102

Multiple Choice

Flynn Company uses a perpetual inventory system and had the following transactions during November:
-November 6 - Purchased $5,800 of inventory on account, terms 2/10, n/30.
-November 8 - Returned $800 of defective units and received full credit.
-November 15 - Paid the amount due.
-Use the information above to answer the following question.What journal entry will be recorded by Flynn Company on November 6?

• A) Debit Inventory and credit Accounts Payable for $5,800
• B) Debit Cost of Goods Sold and credit Accounts Payable for $5,684
• C) Debit Purchases and credit Accounts Payable for $5,800
• D) Debit Inventory and credit Accounts Payable for $5,684

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Definitions:

Passage of Time

The continuous progression into the future as moments transition from the present into the past.

Polychronic Activity

Polychronic activity denotes the handling of multiple tasks or engagements simultaneously, often seen in cultures or individuals who manage their time in a fluid, non-linear manner.

Customary Activity

An activity or behavior that is regularly observed and widely accepted as a tradition or norm within a particular group or society.

Financial Report

A formal record of the financial activities and condition of a business, person, or other entity, usually in the form of balance sheets, income statements, and cash flow statements.