Under the Perpetual Inventory System, What Is the Correct Entry

question 63

Multiple Choice

Under the perpetual inventory system, what is the correct entry for the credit purchase of 10 electric keyboards at $100 per keyboard plus GST of 10%?

• A) DR Inventory $1100; CR Accounts payable $1000; CR GST payable $100
• B) DR Inventory $1000; DR GST receivable $100; CR Accounts payable $1100
• C) DR Accounts payable $1100; CR Inventory $1000; CR GST payable $100
• D) DR Inventory $1100; CR Accounts payable $1100

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Definitions:

Immediate Experience

Direct, unmediated interaction with the environment or a situation.

Trained Introspectors

Individuals who have been trained to carefully examine and report on their own thoughts and feelings.

Wilhelm Wundt

A German psychologist who is considered the father of experimental psychology; he founded the first psychological laboratory.

Practice Observations

The act of repeatedly watching or monitoring phenomena to gain expertise or collect data in a particular field.