Under the Perpetual Inventory System, What Is the Entry for the Credit

question 20

Multiple Choice

Under the perpetual inventory system, what is the entry for the credit purchase of 10 electric guitars at $250 per guitar plus GST of $25 each?

• A) Debit inventory $2750; credit accounts payable $2500; credit GST outlays $250
• B) Debit inventory $2500; debit GST outlays $250; credit accounts payable $2750
• C) Debit inventory $2750; credit accounts payable $2750
• D) Credit accounts payable $2750; debit inventory $2500; credit GST collections $250

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Definitions:

Muscle Damage

Harm or injury to muscle fibers, often resulting from physical activities, accidents, or medical conditions, which can lead to pain, swelling, and decreased function.

Enzyme

A complex chemical substance produced by the body, found primarily in the digestive juices, that acts upon food substances to break them down for absorption.

Plaque

A sticky deposit on teeth in which bacteria proliferate, or a substance that accumulates in the arteries leading to atherosclerosis; can also refer to an ornamental plate or tablet.

Cholesterol Levels

Measurements of the total amount of cholesterol in the blood, including HDL (good) cholesterol and LDL (bad) cholesterol, important for assessing heart disease risk.