Flynn Company Uses a Perpetual Inventory System and Had the Following

question 148

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 15?

• A) Debit Accounts Payable and credit Cash for $4,900
• B) Debit Accounts Payable for $5,000, credit Purchase Discount for $100, and credit Cash for $4,900
• C) Debit Accounts Payable for $5,000, credit Inventory for $100, and credit Cash for $4,900
• D) Debit Accounts Payable for $4,900, credit Inventory for $100, and credit Cash for $4,800

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Definitions:

Power Will Terminate

The condition under which an entity's or individual's authority or ability to make decisions will come to an end.

False Claims

Assertions or statements made that are not true, which can pertain to products, services, or legal testimony.

Purchasing Agent

A person tasked with acquiring goods or services for their organization or client.

Sanitation Regulations

laws and guidelines designed to protect public health by ensuring the cleanliness of water, food, and living environments.