On July 10,a Hardware Retailer Purchased Merchandise Inventory on Account

question 112

Multiple Choice

On July 10,a hardware retailer purchased merchandise inventory on account for $1,700.The company plans to pay $900 the following week and the remaining amount the week after.Which of the following is the correct entry to record this transaction in a purchases journal? Assume a perpetual inventory system is used.

• A)$850 will be recorded in the Accounts Payable CR and Merchandise Inventory CR column.
• B)$2,600 will be recorded in the Accounts Payable DR and Merchandise Inventory DR column.
• C)$1,700 will be recorded in the Merchandise Inventory CR and Accounts Payable DR column.
• D)$1,700 will be recorded in the Accounts Payable CR and Merchandise Inventory DR column.

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Definitions:

Payment

The transfer of funds from one party to another in exchange for goods or services.

Declared Obsolete

The designation of a product, service, or technology as outdated or no longer in use, often replaced by newer alternatives.

Obsolete Materials

Items or materials that are no longer used or needed due to changes in technology, market demand, or product design.

Material Disposal

The process of discarding, recycling, or selling off waste materials or surplus goods in an environmentally responsible and cost-effective manner.