On July 4, a Hardware Manufacturing Firm Purchased Inventory on Account

question 37

Multiple Choice

On July 4, a hardware manufacturing firm purchased inventory on account for $1,300. The company plans to pay $700 in the next week and the remaining in the week after. Which of the following is the correct entry to record this transaction in a purchases journal? Assume a perpetual inventory system is used.

• A)$650 will be recorded in the Accounts Payable CR and Merchandise Inventory CR column.
• B)$2,000 will be recorded in the Accounts Payable DR and Merchandise Inventory DR column.
• C)$1,300 will be recorded in the Merchandise Inventory CR and Accounts Payable DR column.
• D)$1,300 will be recorded in the Accounts Payable CR and Merchandise Inventory DR column.

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