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When Merchandise Is Purchased on Account Under the Perpetual Inventory

Question 58

Multiple Choice

When merchandise is purchased on account under the perpetual inventory system, the journal entry is:


A) debit Purchases and credit Accounts Payable.
B) debit Accounts Payable and credit Inventory.
C) debit Inventory and credit Accounts Payable.
D) debit Accounts Payable and credit Purchases.

Correct Answer:

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