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132) On May 1, a company purchased inventory costing $2,000 on account with terms 2/10, n/30. On May 8, the company pays for this inventory and records which of the following using a perpetual inventory system? 1. Accounts Payable Cash 2. Accounts Payable Inventory Cash 3. Accounts Payable Inventory Cash 4. Cash 2,000 1,960 40 2,000 2,000 2,000 2,000 40 1,960

132) On May 1, a company purchased inventory costing $2,000 on account with terms 2/10, n/30. On May 8, the company pays for this inventory and records which of the following using a perpetual inventory system? 1. Accounts Payable Cash 2. Accounts Payable Inventory Cash 3. Accounts Payable Inventory Cash 4. Cash 2,000 1,960 40 2,000 2,000 2,000 2,000 40 1,960

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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132) On May 1, a company purchased inventory costing $2,000 on account with terms 2/10, n/30. On May 8, the company pays for this inventory and records which of the following using a perpetual inventory system? 1. Accounts Payable Cash 2. Accounts Payable Inventory Cash 3. Accounts Payable Inventory Cash 4. Cash 2,000 1,960 40 2,000 2,000 2,000 2,000 40 1,960
Transcribed Image Text:132) On May 1, a company purchased inventory costing $2,000 on account with terms 2/10, n/30. On May 8, the company pays for this inventory and records which of the following using a perpetual inventory system? 1. Accounts Payable Cash 2. Accounts Payable Inventory Cash 3. Accounts Payable Inventory Cash 4. Cash 2,000 1,960 40 2,000 2,000 2,000 2,000 40 1,960
Expert Solution
Step 1
JOURNAL ENTRIES
Journal Entry is the First stage of Accounting Process. Journal Entry is the Process of Recording all Financial & Non Financial Transaction in a Proper Format.
 
Journal entries help to Keep the Records of All Transactions.
 
Golden Rule of Journal Entry:-
    • Debit the Receiver, Credit the Giver.
    • Debit what Comes in, Credit what Goes Out.
    • Debit all Expenses & Losses, Credit all Income & Gains.
 
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