A Firm Using the Periodic Inventory Method Purchased $2,000 of Inventory

question 72

Multiple Choice

A firm using the periodic inventory method purchased $2,000 of inventory on terms 2/10, n/30. The journal entry to record this transaction would include a debit to

• A) Purchases
• B) Purchase Discounts
• C) Inventory
• D) Accounts Payable

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Definitions:

Lump-Sum Merit Raises

A one-time payment given to an employee as a reward for exceptional performance, instead of a regular salary increase.

Merit-Based Increase

Salary increases awarded to employees based on their performance, achievement, or accomplishments rather than tenure or seniority.

Merit Raises

Salary increases based on an employee's performance as assessed through evaluations, rewarding good work.

Performance Appraisal System

A systematic process by which an employee's job performance and productivity are evaluated by their supervisor or manager.