Uniq Works Purchased Raw Materials Amounting to $122,000 on Account

question 163

Multiple Choice

Uniq Works purchased raw materials amounting to $122,000 on account and $20,000 for cash.The materials will be used to manufacture upholstery for furniture manufacturers on a contract basis.Which of the following journal entries correctly records this transaction?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Payable } & 122,000 & \\
• \hline \text { Cash } & 20,000 & \\
• \hline \text { Raw Materials Inventory } & & 142,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Finished Goods Inventory } & 142,000 & \\
• \hline \text { Accounts Payable } & & 142,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Work-in-Process Inventory } & 142,000 & \\
• \hline \text { Accounts Payable } & & 142,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Raw Materials Inventory } & 142,000 & \\
• \hline \text { Cash } & & 20,000 \\
• \hline \text { Accounts Payable } & & 122,000 \\
• \hline
• \end{array}\]

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Definitions:

Two-Point Discrimination

The ability of the skin to distinguish two nearby points as separate stimuli, a measure of sensory nerve function.

Nociceptors

Sensory receptors that respond to potentially harmful stimuli by sending nerve signals to the brain triggering the sensation of pain.

Chemoreceptors

Sensory receptors that respond to chemical stimuli, such as those found in the nose, tongue, or certain body cells.

Special Sense

A type of sensory experience that includes vision, hearing, taste, smell, and balance, involving specific organ systems.