The Journal Entry to Record the Receipt of Inventory Purchased

question 175

Multiple Choice

The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be

• A)Jan. 1 Merchandise Inventory 1,500Cash 1,500
• B)Jan. 1 Office Supplies 1,500Cash 1,500
• C)Jan. 1 Purchases 1,500Accounts Payable 1,500
• D)Jan. 1 Cash 1,500Accounts Receivable 1,500

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Definitions:

Base Salary

The initial rate of compensation given to an employee, excluding any bonuses or benefits.

Weighted-Average Inventory

A method of calculating the cost of inventory that takes into account the cost of goods sold and the remaining inventory.

Generally Accepted Accounting Principles

A set of rules and standards designed to improve the clarity, consistency, and comparability of financial reporting across different entities.

Fiscal Year

An accounting period of twelve months used for government or corporate financial reporting and budgeting, not necessarily aligning with the calendar year.