A Company Using the Perpetual Inventory System Purchased Inventory Worth

question 96

Multiple Choice

A company using the perpetual inventory system purchased inventory worth $540,000 on account with credit terms of 2/15,n/45.Defective inventory of $40,000 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)$540,000 debit to Accounts Payable and $540,000 credit to Cash
• B)$500,000 debit to Accounts Payable and $500,000 credit to Cash
• C)$540,000 debit to Accounts Payable,$530,000 credit to Cash,and $10,000 credit to Merchandise Inventory
• D)$530,000 debit to Accounts Payable,$10,000 credit to Merchandise Inventory,and $500,000 credit to Cash

---

Definitions:

Learning Disorders

Neurodevelopmental disorders that affect the brain's ability to receive, process, analyze, or store information, making it difficult to learn in a typical manner.

Communication Disorders

Disorders characterized by persistent difficulties in the acquisition and use of language and other means of communicating.

Delirium

A sudden change in the brain that causes mental confusion and emotional disruption, often resulting from illness, medication, or surgery.

Dementia

A broad category of brain diseases that result in a long-term and often gradual decrease in the ability to think and remember, significantly affecting a person's daily functioning.