A Company Uses the Perpetual Inventory System and Recorded the Following

question 127

Multiple Choice

A company uses the perpetual inventory system and recorded the following entry:
$$\begin{array} { | l | r | r | } \hline \text { Accounts Payable } & 2,500 & \\\hline \text { Merchandise Inventory } & & 50 \\\hline \text { Cash } & & 2,450 \\\hline\end{array}$$
This entry reflects a:

• A) Purchase of merchandise on credit.
• B) Return of merchandise.
• C) Sale of merchandise on credit.
• D) Payment of the account payable less a 2% cash discount taken.
• E) Payment of the account payable less a 1% cash discount taken.

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Definitions:

Scooter Manufacturer

A company that designs, builds, and sells scooters and related accessories.

Computer-Aided Design

The use of computer software to facilitate the creation, modification, analysis, or optimization of a design.

Artificial Intelligence

The simulation of human intelligence processes by computer systems, including learning, reasoning, and self-correction.

Machine Learning

A subset of artificial intelligence (AI) that enables systems to learn, improve from experience, and make decisions with minimal human intervention.