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:

Desktop Printers

Compact printers designed for personal or small office use, capable of printing documents, photos, and other materials from desktop or laptop computers.

MST

In computational science, refers to Minimum Spanning Tree, a subset of edges in a weighted graph that connects all vertices with the minimal total edge weight.

MSE

Stands for Mean Squared Error, a measure used to evaluate the difference between the predicted and actual values in statistics and machine learning.

F-ratio

A statistic used in ANOVA tests to compare variance among group means to the variance within groups, helping to determine if there are significant differences.