Analyze the following T-account in the ledger of Gibbs Company.
If $5,000 in the Inventory account represents merchandise purchased from a supplier,we can assume the company uses the
A) perpetual inventory method and $400 may represent a purchase return.
B) perpetual inventory method and $400 may represent cost of goods sold.
C) perpetual inventory method and $400 may represent a purchase allowance.
D) All of these answer choices are correct.
Correct Answer:
Verified
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