A Merchandiser Purchased Inventory on Account for $10,000

question 79

Multiple Choice

A merchandiser purchased inventory on account for $10,000. Under the periodic inventory system, the journal entry to record purchases would include:

• A)a debit to Purchases for $10,000 and a credit to Accounts Payable for $10,000.
• B)a debit to Accounts Payable for $10,000 and a credit to Purchases for $10,000.
• C)a debit to Merchandise Inventory for $10,000 and a credit to Accounts Payable for $10,000.
• D)a debit to Accounts Payable for $10,000 and a credit to Merchandise Inventory for $10,000.

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Definitions:

Recessionary Pressures

Economic factors or conditions indicating an impending or current period of economic downturn.

Recessions

Intervals of brief economic downturn during which there is a reduction in trade and industry activity, most often marked by a decline in GDP over two successive quarters.

Government Spending

Expenditures made by the government for the purpose of maintaining the economy and public services.

Paradox Of Thrift

The economic theory suggesting that increased saving in the aggregate can lead to a decrease in economic growth, income, and spending.