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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