Garfunkle Company had the following four transactions during January 2012:

- Refer to Exhibit 7-1.Given the information above,with the perpetual inventory method,the entry to record the January 15 transaction would include a

Question

Garfunkle Company had the following four transactions during January 2012:

- Refer to Exhibit 7-1.Given the information above,with the perpetual inventory method,the entry to record the January 15 transaction would include a

Quizplus · Accepted Answer

Under perpetual inventory method, inventory is updated continuously with each purchase and sale. Thus, the entry to record the January 15 transaction would include a credit to inventory for the cost of purchased goods, which is $150. This increases the inventory balance by $150. The other options are not correct because there is no purchase return involved and purchases are not credited in perpetual inventory system.

Garfunkle Company Had the Following Four Transactions During January 2012