A Firm Uses the Perpetual Inventory Method

question 51

Multiple Choice

A firm uses the perpetual inventory method.Which of the following entries would be made to record a purchase of inventory on credit?

• A)The accounting entry would be a debit to Accounts payable and GST clearing and a credit to Inventory.
• B)The accounting entry would be a debit to Accounts payable and a credit to Purchases and GST Clearing.
• C)The accounting entry would be a debit to Purchases and GST clearing and a credit to Accounts payable.
• D)The accounting entry would be a debit to Inventory and GST clearing and a credit to Accounts payable.

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