The Journal Entry to Record the Purchase on Account of $900

question 25

Multiple Choice

The journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid by their supplier and added to the invoice is:

• A)debit Accounts Receivable $965; credit Sales $965
• B)debit Purchases $900, debit Freight In $65; credit Accounts Payable $965
• C)debit Purchases $965; credit Accounts Payable $965
• D)debit Accounts Payable $965, credit Freight in $65; credit Purchases $900

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Definitions:

Working

The act of engaging in employment or exerting effort towards the production of goods and services in exchange for wages or salary.

Looking For Work

The process engaged in by individuals who are actively seeking employment opportunities but are currently unemployed.

Poverty Line

The minimum level of income deemed adequate in a particular country for individuals to cover basic needs of living.

Welfare Rolls

A term referring to the list or number of individuals receiving government assistance for living expenses due to economic hardship.