Identify the Journal Entry Required to Correctly Record the Following

question 35

Multiple Choice

Identify the journal entry required to correctly record the following transaction. Purchased goods on credit.

• A) Dr Inventory
• Cr Accounts payable
• B) Dr Inventory
• Cr Accounts receivable
• C) Dr Accounts receivable
• Cr Inventory
• D) Dr Purchases
• Cr Cash at bank

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Definitions:

Cost Of Goods Sold

Costs that are directly incurred in the process of producing goods for sale by a company, such as labor and material expenses.

Selling And Administrative Expenses

Costs incurred by a company that are not directly tied to a specific product or service's production but are necessary for running the business.

Financial Planning

The process of outlining how a business or individual will manage their finances to meet goals and objectives, involving budgeting, investments, retirement planning, and tax strategies.

Contingency Plans

strategies developed to mitigate the impact of unexpected events or emergencies.