The Following Journal Entry Was Included in the Accounting Records

question 127

Multiple Choice

The following journal entry was included in the accounting records of Jentzen Corp.:
Based on this information,it is likely that the company:

• A)Purchased inventory for cash.
• B)Paid for inventory purchased on credit,and took advantage of a 1% purchase discount.
• C)Sold inventory for cash.
• D)Collected cash for inventory sold on credit,and recognized a 1% sales discount.

---

Definitions:

Internal Controls

Processes and procedures implemented by a business to safeguard its assets, enhance the reliability of its accounting records, ensure compliance with laws, and promote efficient operations.

Accounting System

A structured process of recording, summarizing, and analyzing an organization's financial transactions.

Chart of Accounts

A systematic list of all account titles and numbers being used by an organization to organize its financial transactions and prepare financial statements.

Beach Hut

A small, often simplistic shelter or dwelling located by the beach, typically used for recreational purposes.