A Company Using the Perpetual Inventory System Purchased Inventory Worth

question 38

Multiple Choice

A company using the perpetual inventory system purchased inventory worth $500,000 on account with credit terms of 3/15,n/45.Defective inventory of $50,000 was returned 3 days later,and the accounts were appropriately adjusted.If the company paid the invoice 25 days later,the journal entry to record the payment would be ________.

• A)$500,000 debit to Accounts Payable and $500,000 credit to Cash
• B)$450,000 debit to Accounts Payable and $450,000 credit to Cash
• C)$500,000 debit to Accounts Payable,$486,500 credit to Cash,and $13,500 credit to Merchandise Inventory
• D)$463,500 debit to Accounts Payable,$13,500 credit to Merchandise Inventory,and $450,000 credit to Cash

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Definitions:

Electrical Process

A series of actions or operations that involve the controlled movement of electrons through conductors and semiconductors.

Chemical Process

A series of chemical reactions or changes that lead to the transformation of one set of chemical substances to another.

Biological Process

A series of actions or steps taken by living organisms to sustain life.

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.