A Company That Uses the Perpetual Inventory System Purchased 500

question 71

Multiple Choice

A company that uses the perpetual inventory system purchased 500 pallets of industrial soap for $7,000 and paid $800 for the freight-in.The company sold the whole lot to a supermarket chain for $12,000 on account.Which of the following entries correctly records the sale?

---

Definitions:

Nonprice Competition

A strategy where businesses compete on factors other than price, such as quality, service, or brand image.

Product Differentiation

A marketing strategy that businesses use to distinguish their products from those of competitors.

Tacit Collusion

A situation where businesses indirectly coordinate actions without explicit agreement, often leading to market prices above competitive levels.

Few Firms

A market situation typically characterized by an oligopoly, where a small number of companies possess the majority of market share.