Assume That a Perpetual Inventory System Is in Use

question 72

Multiple Choice

Assume that a perpetual inventory system is in use.Which of the following statements regarding the journal entries prepared is correct?

• A) "Freight-out" or delivery costs associated with sales should be included in Cost of Goods Sold.
• B) When a company receives payment from a customer for a sale, Cash is debited and Accounts Payable is credited.
• C) When a company grants an allowance to a customer, Inventory is credited when using a perpetual inventory system.
• D) When a customer returns inventory, the seller debits Sales Returns & Allowances under a perpetual inventory system.

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Definitions:

Archenteron

The primary gut that forms during gastrulation in the developing embryo.

Gray Crescent

The grayish area of cytoplasm that marks the region where gastrulation begins in an amphibian embryo

Developmental Determinants

Factors that influence the growth and differentiation process of an organism from its embryonic stage to maturity.

Growth Factors

Naturally occurring proteins capable of stimulating cellular growth, proliferation, healing, and cellular differentiation.