A Company That Uses the Perpetual Inventory System Purchases Inventory

question 89

Multiple Choice

A company that uses the perpetual inventory system purchases inventory for $61,000 on account,with terms of 3/10,n/30.Which of the following is the journal entry to record the payment made within 10 days?

• A)a debit to Accounts Payable for $61,000,a credit to Cash for $59,170,and a debit to Merchandise Inventory for $1,830
• B)a debit to Accounts Payable for $61,000,a credit to Merchandise Inventory for $1,830,and a credit to Cash for $59,170
• C)a debit to Merchandise Inventory for $1,830,a debit to Accounts Payable for $61,000,and a credit to Cash for $62,830
• D)a debit to Accounts Payable for $59,170,a debit to Merchandise Inventory for $1,830,and a credit to Cash for $61,000

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Definitions:

Suggestive Mark

A trademark that hints at the nature or quality of the goods or services it represents, without describing them directly.

Characteristic

A distinguishing trait, quality, or property that defines or identifies something.

Common Name

A name by which a species is known to the general public, as opposed to its scientific or Latin name.

Trademark Infringement

An unauthorized use of a trademark or service mark on competing or related goods and services, leading to a likelihood of confusion.