QUESTION 10The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would beOa. Jan. 1 Cash1,500Accounts ReceivableOb. Jan. 1 PurchasesAccounts Payablec. Jan. 1 Office SuppliesCash1,5001,500Od. Jan. 1 Merchandise Inventory 1,500Cash1,5001,5001,5001,500

Under Perpetual inventory system Purchase Account is not maintained and all Purchase are debited to inventory Account. Sales account are maintained, but after recording sales, corresponding Cost of goods sold (COGS) are removed from the inventory. Further, if the transaction has been settled in cash, Accounts Receivable will not come into play. Accordingly, answer is: d

Business

Accounting

The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be a. Jan. 1 Cash 1,500 Accounts Receivable b. Jan. 1 Purchases Accounts Payable c. Jan. 1 Office Supplies Cash 1,500 1,500 d. Jan. 1 Merchandise Inventory 1,500 Cash 1,500 1,500 1,500 1,500

The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be a. Jan. 1 Cash 1,500 Accounts Receivable b. Jan. 1 Purchases Accounts Payable c. Jan. 1 Office Supplies Cash 1,500 1,500 d. Jan. 1 Merchandise Inventory 1,500 Cash 1,500 1,500 1,500 1,500

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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Subject: accounting