A Merchandiser Purchased Inventory on Account for $10,000

question 79

Multiple Choice

A merchandiser purchased inventory on account for $10,000. Under the periodic inventory system, the journal entry to record purchases would include:

• A)a debit to Purchases for $10,000 and a credit to Accounts Payable for $10,000.
• B)a debit to Accounts Payable for $10,000 and a credit to Purchases for $10,000.
• C)a debit to Merchandise Inventory for $10,000 and a credit to Accounts Payable for $10,000.
• D)a debit to Accounts Payable for $10,000 and a credit to Merchandise Inventory for $10,000.

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Definitions:

Defined Contribution Plan

A pension plan that requires a fixed amount of money to be invested on the employee’s behalf during the employee’s working years.

Annual Pension Benefit

The amount a retiree receives yearly from their pension plan, which is based on factors such as salary history and years of service.

Defined Benefits Plan

A type of pension plan where the benefits that the employee will receive upon retirement are defined in advance.

Investment Risks

Investment risks involve the potential for losing some or all of the original investment, affected by market volatility, inflation, and other factors.