An Electronics Retailer Purchases $20,000 of Computers for Resale

question 55

Multiple Choice

An electronics retailer purchases $20,000 of computers for resale.The retailer spends $500 in cash for transportation cost.Under a perpetual inventory system the journal entry to record the purchase will include:

• A)$20,500 will be debited to Inventory,$20,000 will be credited to Accounts Payable,and $500 will be credited to Cash.
• B)$20,000 will be debited to Inventory and $20,000 will be credited to Cash.
• C)$20,000 will be credited to Inventory and $20,000 will be credited to Purchases.
• D)$20,500 will be debited to costs of goods sold and $20,500 will be credited to Accounts Payable.

---

Definitions:

Temperature Dependence

Describes how the properties of substances change as the temperature changes, affecting reactions, phases, and physical properties.

Insect Activity

The behavioral patterns and physical actions of insects, including feeding, reproduction, and movement.

Growth Rate

The rate at which the quantity of something, such as an organism, population, or economy, increases over time.

Crime Scene

A location where a crime has taken place and where forensic evidence is gathered to help solve the crime.