A Company Using the Perpetual Inventory System Purchased Inventory Worth

question 94

Multiple Choice

A company using the perpetual inventory system purchased inventory worth $510,000 on credit with terms of credit being 3/15,n/45.Defective inventory of $80,000 was returned 2 days later and the accounts were appropriately adjusted.If the company paid the invoice 20 days later,the journal entry to record the payment would be:

• A)$430,000 debit to Accounts payable and $430,000 credit to Cash.
• B)$510,000 debit to Accounts payable,$497,100 credit to Cash and $12,900 credit to Inventory.
• C)$442,900 debit to Accounts payable,$12,900 credit to Inventory and $430,000 credit to Cash.
• D)$510,000 debit to Accounts payable and $510,000 credit to Cash.

---

Definitions:

Key Qualifications

Essential skills, experience, and attributes required for a particular job or role.

Résumé

A detailed document summarizing an individual's skills, education, and experience, used to apply for jobs and showcase professional background.

Summary of Qualifications

A brief overview of a person’s achievements, skills, and qualifications, typically presented at the beginning of a resume.

Career Objective

A statement or goal regarding one’s career aspirations, often included in resumes or job applications to outline professional intentions.