Analyze the Following T-Account in the Ledger of Gibbs Company

question 153

Multiple Choice

Analyze the following T-account in the ledger of Gibbs Company.
If $5,000 in the Inventory account represents merchandise purchased from a supplier,we can assume the company uses the

• A)perpetual inventory method and $400 may represent a purchase return.
• B)perpetual inventory method and $400 may represent cost of goods sold.
• C)perpetual inventory method and $400 may represent a purchase allowance.
• D)All of these answer choices are correct.

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