The Journal Entry to Record the Purchase on Account of $900

question 66

Multiple Choice

The journal entry to record the purchase on account of $900 of merchandise with freight of $65 prepaid and added to the invoice is:

• A) debit Purchases $965; credit Accounts Payable $965
• B) debit Accounts Payable $965, debit Freight in $65; credit Purchases $900
• C) debit Purchases $900, debit Freight In $65; credit Accounts Payable $965
• D) debit Accounts Receivable $965; credit Sales $965

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Definitions:

Durable Power of Attorney

A legal document that grants a designated person the authority to make financial and/or health care decisions on behalf of someone else, even if the grantor becomes incapacitated.

Incapacity

The lack of legal ability to perform an act, such as entering into a contract due to mental disability or minority.

Sound Mind and Memory

A legal term indicating that a person is mentally competent to make decisions and understand their consequences.

Holographic

Related to or produced by holography, a photographic technique that records the light scattered from an object and then presents it in a way that appears three-dimensional.