FAD Company Uses a Periodic Inventory System and Its Inventory

question 119

Multiple Choice

FAD Company uses a periodic inventory system and its inventory records for the period contain the following information:

-Use the information above to answer the following question.The journal entry necessary at the end of the period to adjust cost of goods sold for the ending inventory still on hand will include which of the following?

• A) Debit Inventory for $6,250
• B) Credit Cost of Goods Sold for $11,250
• C) Credit Purchases for $10,200
• D) Credit Inventory for $5,000

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Definitions:

Operant Stimulus

A stimulus that follows a behavior and increases the likelihood that the behavior will be repeated.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any need for learning.

Cognitive Perspective

An approach in psychology that emphasizes internal mental processes as the key to understanding human behavior.

Mentally Anticipate

The act of forecasting or predicting future events or reactions with the mind.