A Company That Uses the Perpetual Inventory System Purchases Inventory

question 71

Multiple Choice

A company that uses the perpetual inventory system purchases inventory for $60,000 on credit,with terms of 3/10,n/30.Which of the following is the journal entry to record the payment made within 3 days?

• A)a debit to Accounts payable for $60,000,a credit to Inventory for $1800 and a credit to Cash for $58,200
• B)a debit to Inventory for $1800,a debit to Accounts payable for $60,000 and a credit to Cash for $61,800
• C)a debit to Accounts payable for $58,200,a debit to Inventory for $1800 and a credit to Cash for $60,000
• D)a debit to Accounts payable for $61,800 ,a credit to Cash for $60,000 and a debit to Inventory for $1800

---

Definitions:

Regulatory Legislation

Laws enacted to control, direct, or manage activities, businesses, or industries, often for the purposes of protection, safety, or fairness.

Theodore Roosevelt

The 26th President of the United States, known for his progressive policies, conservation efforts, and the establishment of the national parks system.

American Education

The system of education in the United States, characterized by a decentralized approach, various educational institutions, and policies that vary widely across states and localities.

Progressive Era

A period of widespread social activism and political reform in the United States, from the 1890s to the 1920s, that aimed to eliminate problems caused by industrialization, urbanization, immigration, and political corruption.