The Proper Journal Entry to Record the Receipt of Inventory

question 206

Multiple Choice

The proper journal entry to record the receipt of inventory purchased on account in a periodic inventory system would be

• A)Jan. 1 Merchandise Inventory 1,600Accounts Payable 1,600
• B)Jan. 1 Office Supplies 1,600Accounts Payable 1,600
• C)Jan. 1 Purchases 1,600Accounts Payable 1,600
• D)Jan. 1 Purchases 1,600Accounts Receivable 1,600

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Definitions:

Federal Government

A system of government where powers are divided between a central government and several regional governments.

Provincial Partnership Acts

Statutes enacted by provincial governments in Canada that govern the formation, operation, and dissolution of partnerships.

Unlimited Liability

A legal structure where business owners are personally responsible for all of the business's debts, without limitation to their personal assets.

Partnership Assets

Assets owned by a partnership, which are used in the operation of the business and are subject to the rights and interests of the partners.