The Journal Entry to Record the Purchase of Merchandise on Account

question 60

Multiple Choice

The journal entry to record the purchase of merchandise on account for $2,750 with freight of $125 prepaid by their supplier and added to the invoice is:

• A)debit Accounts Payable $2,875, debit Freight in $125; credit Purchases $2,750
• B)debit Accounts Receivable $2,875; credit Sales $2,875
• C)debit Purchases $2,750, debit Freight In $125; credit Accounts Payable $2,875
• D)debit Purchases $2,750; credit Accounts Payable $2,750

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Definitions:

Beavers

Semi-aquatic rodents known for building dams, canals, and lodges, significantly impacting their surrounding environment and ecosystem.

Natural Ecosystems

Communities of living organisms in conjunction with the nonliving components of their environment, interacting as a system.

Introducing New Species

The act of bringing a species into an ecosystem where it does not naturally occur, potentially disrupting local ecosystems.