Use the Following Information for the Following Questions:
Windsor Ltd $\quad 240$

question 7

Multiple Choice

Use the following information for the following questions:
Windsor Ltd. uses FIFO to cost its inventory. The following information is available for Windsor's inventory of product # 205:
Beginning inventory: $\quad 240$ units $@ \$ 5.28$ per unit
March 1: $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Purchase of 500 units $@ \$ 5.00$ per unit
April 10: $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Sale of 200 units $@ \$ 10.20$ per unit
-Assuming Windsor uses the perpetual inventory system, the entry to account for the March 1 purchase is

• A) debit Inventory and credit Accounts Payable, $3,500.
• B) debit Purchases and credit Accounts Payable, $3,500.
• C) debit Accounts Payable and credit Purchases, $3,500.
• D) debit Accounts Payable and credit Inventory, $3,500.

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Definitions:

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a given period.

British Pound

The currency of the United Kingdom, often symbolized as £ and known officially as the pound sterling.

Economic Boom

A period of significant economic growth, expansion, and prosperity.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.