Avery Supplies Uses a Periodic Inventory System

question 141

Multiple Choice

Avery Supplies uses a periodic inventory system. Avery purchased $10,000 of inventory on account. The terms were 3/10, n/30. The purchase was made on February 1. Which of the following journal entries properly records this transaction?

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Definitions:

Capital Balances

Represents the amount of money that owners have invested in a company minus any withdrawals they have made from the company.

Salary Allowances

Fixed sums or benefits paid in addition to a base salary, often determined by specific terms of employment.

Capital Accounts

Accounts that track the equity ownership of partners or shareholders in a business, reflecting contributions, withdrawals, and the share of profits or losses.

Ownership Equity

Refers to the residual interest in the assets of an entity after deducting liabilities, representing the owner's claim on the business.