Roller Blade Company Uses the Perpetual Inventory System and Had

question 198

Essay

Roller Blade Company uses the perpetual inventory system and had the following transactions during October:
$\begin{array}{|l|l|}\hline \text { October 6: } & \begin{array}{l}\text { Purchased } \$ 4,000 \text { of inventory. The seller's credit terms are } 2 / 10, \\\mathrm{n} / 30 .\end{array} \\\hline \text { October } 8: & \text { Returned } \$ 200 \text { worth of defective units and received full credit. } \\\hline \text { October } 15: & \text { Paid the amount due, less the returned items. }\\\hline\end{array}$
Prepare journal entries to record each of the preceding transactions.

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Definitions:

Heuristics

Cognitive shortcuts or rules of thumb that simplify decision making.

Mental Set

A tendency to approach situations in a certain way because that method has worked in the past, potentially limiting problem-solving abilities.

Accuracy

The degree to which a measurement or calculation reflects the true value or correct result.

Precision

The accuracy and specificity with which an action is performed or a measurement is taken.