Buffet Company Uses the Periodic Inventory Method

question 38

Multiple Choice

Buffet Company uses the periodic inventory method.On April 15,Buffet Company purchased merchandise inventory from Guacos Inc.with an invoice price of $70,000 and credit terms of 2/10,n/30.Buffet Company paid Guacos on April 25.How would Buffet Company record this transaction?

• A)Debit Accounts Payable for $70,000,credit Purchase Discounts for $1,400,and credit Cash for $68,600.
• B)Debit Accounts Payable for $70,000,credit Merchandise Inventory for $1,400,and credit Cash for $68,600.
• C)Debit Accounts Payable for $68,600,debit Purchase Discounts for $1,400,and credit Cash for $70,000.
• D)Debit Accounts Payable for $68,600 and credit Cash for $68,600.
• E)Debit Accounts Payable for $70,000 and credit Cash for $70,000.

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Definitions:

Production Technology

The methods, equipment, and techniques used in the manufacturing process to produce goods and services.

Sociological Theory

is a set of ideas that provides an explanation for human society, guiding research and thinking in sociology and other social sciences.

George Ritzer

An American sociologist best known for his concept of "McDonaldization," analyzing the effects of globalization and rationalization on society.

Western Domination

The historical and contemporary dominance of Western industrialized nations in global political, economic, and cultural systems.