Morgan, Inc B) C) D) $$\begin{array} { | l | r | r | } \hline \text { Purchases } & 14.700 & \\\hline \text { Accounts Payable } & & 14.700 \\\hline\end{array}$$

question 123

Multiple Choice

Morgan, Inc. uses a perpetual inventory system and the net method of recording purchases. On May 12, a merchandise purchase of $15,000 was made on credit, 2/10, n/30. The journal entry to record this purchase is:

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Merchandite Inventory } & 15,000 & \\
• \hline \text { Accounts Payable } & & 15,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Payable } & 15,000 & \\
• \hline \text { Merchandite Inventory } & & 15,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | l | }
• \hline \text { Merchandite Inventory } & 14.700 & \\
• \hline \text { Accounts Payable } & & 14.700 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Purchases } & 14.700 & \\
• \hline \text { Accounts Payable } & & 14.700 \\
• \hline
• \end{array}\]
• E) \[\begin{array} { | l | r | r | }
• \hline \text { Purchases } & 15,000 & \\
• \hline \text { Accounts Payable } & & 15,000 \\
• \hline
• \end{array}\]

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Definitions:

Brand Equity

The additional market share and profits products earn because of the brand’s strength compared with that of competing products.

Market Share

The portion of a market controlled by a particular company or product, usually expressed as a percentage.

Brand Identity

The visible elements of a brand, such as color, design, and logo, that identify and distinguish the brand in consumers' minds.

Brand Extension

The practice of using an existing brand name on a new product in a different category to leverage brand equity.