Polk Company uses a perpetual inventory system and had the following transactions during November: November 6-Purchased $8,700 of inventory on account,terms 2/10,n/30.
November 8-Returned $1,200 of defective units and received full credit.
November 15-Paid the amount due.
What journal entry will be recorded by Polk Company on November 6?
A)Debit Inventory and credit Accounts Payable for $8,700.
B)Debit Cost of Goods Sold and credit Accounts Payable for $8,526.
C)Debit Purchases and credit Accounts Payable for $8,700.
D)Debit Inventory and credit Accounts Payable for $8,526.

Question

Quizplus · Accepted Answer

When inventory is purchased on credit in a perpetual inventory system,the Inventory account is increased (debited)and Accounts Payable is increased (credited)for the cost of the inventory purchased.

Polk Company Uses a Perpetual Inventory System and Had the Following