The Journal Entry to Record the Purchase of $7,400 of Inventory

question 34

Multiple Choice

The journal entry to record the purchase of $7,400 of inventory on account under the perpetual inventory system is:

• A)debit Inventory,$7,400;credit Cash,$7,400.
• B)debit Purchases,$7,400;credit Accounts Payable,$7,400.
• C)debit Inventory,$7,400;credit Accounts Payable,$7,400.
• D)debit Cost of Goods Sold,$7,400;credit Inventory,$7,400.

---

Definitions:

Incentive-Based

Refers to programs or strategies that motivate desired behaviors by offering rewards or benefits as incentives.

Pretests

Preliminary tests or assessments conducted to evaluate the effectiveness or performance of a campaign, product, or strategy before its full-scale launch.

In-House Agency

A marketing or advertising agency that is owned and operated within the company it serves, as opposed to being an external or separate entity.

Portfolio Test

A method used in advertising and marketing to evaluate the effectiveness of different advertisements by presenting them together with other ads to consumers.