A Firm Uses the Periodic Inventory Method

question 81

Multiple Choice

A firm uses the periodic inventory method.Which of the following entries would be made to record a return of $220 of inventory purchased on credit,including GST?

• A)The accounting entry would be a $200 debit to Accounts payable and a $200 credit to Purchases.
• B)The accounting entry would be a $220 debit to Purchases and a $220 credit to Accounts payable.
• C)The accounting entry would be a $200 debit to Purchase returns and allowances,a $20 debit to GST clearing and a $220 credit to Accounts payable.
• D)The accounting entry would be a $220 debit to Accounts payable a $200 credit to Purchase returns and allowances,and a $20 credit to GST clearing.

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Definitions:

Limited Queue Length

A queue system in which the total number of items or customers that can wait in line is capped or limited.

Multiple Single-Channel Systems

Systems involving various individual pathways through which processes or transactions occur sequentially.

Utilization Factor

A metric that measures the percentage of time that a resource (e.g., machine, employee) is actively used compared to the total available time.

Time Between Arrivals

The average or specified period of time that elapses between the arrival of successive units, customers, or entities in a process or system.