Dublin Company Uses the Periodic Inventory System B) $$\begin{array} { | c | r | r | } \hline \text { Cash } & 11,000 & \\\hline \text { Accounts Payable } & & 11,000 \\\hline\end{array}$$

question 252

Multiple Choice

Dublin Company uses the periodic inventory system.On February 1,the company purchased inventory on account for $11,000.The terms were 4/10,n/30.On February 2,it returned damaged goods worth $500 to the supplier.Give the journal entry for the payment if the invoice is paid after the discount period.(Round your answers to the nearest dollar.)

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Payable } & 11,000 & \\
• \hline \text { Cash } & & 10,560 \\
• \hline \text { Purchase Discounts } & & 440 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Cash } & 11,000 & \\
• \hline \text { Accounts Payable } & & 11,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Accounts Payable } & 10,500 & \\
• \hline \text { Cash } & & 10,500 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 10,560 & \\
• \hline \text { Purchase Discounts } & 440 & \\
• \hline \text { Accounts Payable } & & 11,000 \\
• \hline
• \end{array}\]

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Definitions:

Short-run Phillips Curve

A graphical representation showing the inverse relationship between the rate of unemployment and the rate of inflation in an economy over the short term.

Money Supply Growth

The rate at which the amount of money available in an economy increases, which can affect inflation and economic stability.

Long-run Equilibrium

Long-run equilibrium is the condition in which all factors of production and inputs in a market are fully adjusted, prices have stabilized, and there is no tendency for change.

Long-run Phillips Curve

A graphical representation suggesting that in the long run, there is no trade-off between inflation and unemployment, as the economy adjusts to natural levels of employment.