A Company That Uses the Perpetual Inventory Method Purchases Inventory

question 52

Multiple Choice

A company that uses the perpetual inventory method purchases inventory for $2,000 from a vendor on account,FOB shipping point,with terms of 2/10,n/30.The company paid the shipper $100 cash for freight in.
-Which of the following entries would be made to record payment to the vendor if the payment is made within 10 days?

• A) $1,960 debit to Accounts payable and a $1,960 credit to Cash
• B) $2,000 debit to Accounts payable, a $100 debit to Inventory and a $1,960 credit to Cash
• C) $2,000 debit to Accounts payable, a $40 credit to Inventory and a $1,960 credit to Cash
• D) $1,960 debit to Accounts payable, a $40 debit to Inventory and a $2,000 credit to Cash

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Definitions:

Genetic Factors

Components of an organism's genetic makeup that influence its characteristics, traits, and predispositions to certain conditions or behaviors.

Big Five Traits

The Big Five personality traits model outlines five broad dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism, believed to encompass the spectrum of human personality.

Heritability

The proportion of variation among individuals that can be attributed to genetic factors, often used in the context of traits or behaviors.

Fraternal Twins

Siblings born at the same time who are genetically as similar as regular siblings because they are the result of two separate eggs fertilized by two different sperm.