A Company That Uses the Perpetual Inventory Method Purchases Inventory

question 93

Multiple Choice

A company that uses the perpetual inventory method purchases inventory of $1,000 on account with terms of 2/10,n/30.Defective inventory of $200 is returned 2 days later and the accounts are appropriately adjusted.If the company paid the vendor 25 days later,which of the following entries would be made to record the payment?

• A) $800 debit to Accounts payable and an $800 credit to Cash
• B) $784 debit to Accounts payable, a $16 debit to Inventory and an $800 credit to Cash
• C) $16 debit to Inventory, an $800 debit to Accounts payable and an $816 credit to Cash
• D) $800 debit to Accounts payable, a $16 credit to Inventory and a $784 credit to Cash

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Definitions:

Emotional Experience

The process and state of encountering or undergoing feelings that result from stimuli, events, or relationships.

Prefrontal Cortex

A region of the brain located at the front of the frontal lobe, crucial for decision making, planning, and moderating social behavior.

Amygdala

A region of the brain within the temporal lobe, involved in the processing of emotions such as fear, pleasure, and anger.

Perceptual Processes

The sequence of steps that starts with the senses and ends with the perception, or cognitive recognition, of the world around you.