Using a Perpetual Inventory System, the Entry to Record the Purchase

question 118

Multiple Choice

Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a

• A) debit to Accounts Payable
• B) debit to Inventory
• C) credit to Inventory
• D) credit to Sales

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Definitions:

Climbing

A gear problem caused by excessive wear in intermeshing gears or bearings. Climbing occurs when intermeshing gears move apart sufficiently for one gear to climb over the apex of its mate.

Zero Lash

The condition or adjustment in a mechanical system where there is no slack or play between the parts, resulting in precise and immediate response to input.

Spur Gearsets

Gears with straight teeth mounted on parallel shafts, commonly used in transmissions to change the speed or torque of a vehicle.

Thrust Forces

Forces that generate forward movement in a machine or structure, often used in reference to propulsion systems like rockets or jet engines.