Lion, Inc, purchased merchandise from a supplier on October 1, 2021, for $100,000 on account, terms 1/10, n/30. What entry would Lion use to record this purchase if the company uses perpetual inventory system. a.Accounts Payable 100,000 Inventory 100,000 b.Purchases 99,000 Accounts Payable 99,000 c.Inventory 99,000 Accounts Payable 99,000 d.Inventory 100,000

Lion, Inc, purchased merchandise from a supplier on October 1, 2021, for $100,000 on account, terms 1/10, n/30. What entry would Lion use to record this purchase if the company uses perpetual inventory system. a.Accounts Payable 100,000 Inventory 100,000 b.Purchases 99,000 Accounts Payable 99,000 c.Inventory 99,000 Accounts Payable 99,000 d.Inventory 100,000

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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A company that uses a perpetual inventory system purchased inventory on account and later returned goods worth $900.00 to the vendor. Which of the following would be the correct journal entry to record these returns? OA. Accounts Payable 900 Merchandise Inventory 900 OB. Accounts Payable 900 Purchase Returns 900 OC. Merchandise Inventory 900 Accounts Payable 900 OD. Purchase Returns 900 Accounts Payable 900
HI, may i know why didn't record cost , $5000?
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