A Merchandiser Purchased Inventory on Account for $18,000

question 23

Multiple Choice

A merchandiser purchased inventory on account for $18,000.Under the periodic inventory system,the journal entry to record the purchase would include ________.

• A)a debit to Purchases for $18,000 and a credit to Accounts Payable for $18,000
• B)a debit to Accounts Payable for $18,000 and a credit to Purchases for $18,000
• C)a debit to Merchandise Inventory for $18,000 and a credit to Accounts Payable for $18,000
• D)a debit to Accounts Payable for $18,000 and a credit to Merchandise Inventory for $18,000

Assess the role of ethics and personal integrity in effective leadership.

Understand the performance and growth advantages of family-influenced companies over nonfamily businesses.

Recognize the significance of family investment funds and their impact on wealth.

Identify the focus areas of enterprising families for maintaining competitive advantage.

---

Definitions:

Plantwide Overhead Rate

A single overhead rate calculated by dividing total factory overhead by the total amount of the allocation base used across the entire plant.

Direct Labor

Labor costs associated with employees who are directly involved in the production of goods or the provision of services.

Predetermined Overhead Rate

A rate used to assign overhead costs to products or services, calculated by dividing estimated overhead by an allocation base such as labor hours.

Predetermined Overhead Rate

A pre-determined rate used to allocate manufacturing overhead expenses to products, based on a specified activity measure, and calculated prior to the start of a period.