A Company Using the Perpetual Inventory System Purchased Inventory Worth

question 94

Multiple Choice

A company using the perpetual inventory system purchased inventory worth $510,000 on credit with terms of credit being 3/15,n/45.Defective inventory of $80,000 was returned 2 days later and the accounts were appropriately adjusted.If the company paid the invoice 20 days later,the journal entry to record the payment would be:

• A)$430,000 debit to Accounts payable and $430,000 credit to Cash.
• B)$510,000 debit to Accounts payable,$497,100 credit to Cash and $12,900 credit to Inventory.
• C)$442,900 debit to Accounts payable,$12,900 credit to Inventory and $430,000 credit to Cash.
• D)$510,000 debit to Accounts payable and $510,000 credit to Cash.

Understand the concept of consumer optimum and how it is determined by the intersection of budget constraints and indifference curves.

Calculate the optimum consumption bundle given a consumer's income and prices of goods.

Analyze the effects of changes in income and prices on consumer behavior and choices.

Describe the concepts of normal and inferior goods and how income changes affect their demand.

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Definitions:

Incremental Action Steps

Small, manageable actions taken one at a time to gradually achieve a larger goal.

Solution-Focused

An approach focusing on finding solutions rather than dwelling on problems, emphasizing positive outcomes and pragmatic strategies.

Priority Goal

An objective or aim considered more important than others, warranting primary focus and resources.

Specific Tasks

Defined actions or duties assigned to individuals or groups aimed at achieving a particular goal.