The Entry to Record a Credit Purchase When the Perpetual $\quad$

question 5

Multiple Choice

The entry to record a credit purchase when the perpetual method is employed is:

• A) DR Purchases\(\quad\)\(\quad\)\(\quad\)\(\quad\)CR Accounts payable
• B) DR Purchases\(\quad\)\(\quad\)\(\quad\)\(\quad\)CR Inventory
• C) DR Inventory\(\quad\)\(\quad\)\(\quad\)\(\quad\)CR Accounts payable
• D) DR Cost of goods sold\(\quad\)CR Accounts payable

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Definitions:

Private Agreements

Contracts or understandings between individuals or entities that are not subject to public disclosure.

Perfection by Attachment

Perfection by Attachment is a legal process in secured transactions under the UCC, ensuring a security interest attaches to the collateral and is enforceable against third parties.

Motor Vehicle

A self-propelled vehicle used for transporting passengers or goods on land.

Perfection

In legal contexts, this term often pertains to the steps required to protect a secured interest against claims from third parties.