Jakey Technologies Has 1,000 Folders in Inventory That Cost $2

question 51

Multiple Choice

Jakey Technologies has 1,000 folders in inventory that cost $2.00 each.The company's supplier announced that,effective immediately,all future folders will cost $2.20 each.Jakey Technologies should

• A)increase the inventory account by $200 and increase the capital account by $200.
• B)increase the inventory account by $200 and decrease the capital account by $200.
• C)increase the inventory account by $200 and increase the accounts payable account by $200.
• D)increase the inventory account by $200 and decrease the accounts payable account by $200.
• E)There is no effect from the price change on the accounts of Jakey Technologies.

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Definitions:

Department Manager

A person who oversees a specific department within an organization, managing its operations and employees.

Promoter

An individual or company that organizes and provides the initial capital, talent, or other resources to start a venture or event.

Potential Liability

The possibility of being responsible for future legal judgments or obligations due to current actions, circumstances, or contracts.

Contracts

Legal agreements between two or more parties that create mutual obligations enforceable by law.