In a Perpetual Inventory System,the Journal Entry to Record the Purchase

question 4

Multiple Choice

In a perpetual inventory system,the journal entry to record the purchase of merchandise on account includes a:

• A)credit to Cash
• B)debit to Purchases
• C)debit to Inventory
• D)credit to Accounts Receivable

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Definitions:

Income Statement Columns

Sections in an income statement that organize and display revenue, expenses, and net income over a specific period.

Adjusted Trial Balance

A list of all accounts and their balances after adjusting entries are made, used to verify the equality of debits and credits.

Financial Statement Column(s)

Categories or headings under which financial data is organized and presented in financial statements to provide insights into a company's financial health.

Net Income

The amount of profit left over after all expenses, including taxes and cost of goods sold, have been subtracted from total revenues.