Washington Warehouse is a small retail business that specializes in the sale of top-of-the-line televisions. This year, the store has begun to carry the Flat TV manufactured by Bass Co. Thus far this year, Washington has recorded the following transactions involving the Flat TV:
5 Jan Purchased 8 Flat TVs at a cost of $14,000
18 Jan Purchased 5 additional Flat TVs at $14,000 each
12 Feb Sold 9 Flat TVs to the Duke Hotel for $153,000

-Refer to the information above. If Washington uses a perpetual inventory system, the journal entry to record the purchase on 18 January would include which of the following?

Question

Washington Warehouse is a small retail business that specializes in the sale of top-of-the-line televisions. This year, the store has begun to carry the Flat TV manufactured by Bass Co. Thus far this year, Washington has recorded the following transactions involving the Flat TV:
5 Jan	 Purchased 8 Flat TVs at a cost of $14,000
18 Jan	 Purchased 5 additional Flat TVs at $14,000 each
12 Feb  Sold 9 Flat TVs to the Duke Hotel for $153,000

-Refer to the information above. If Washington uses a perpetual inventory system, the journal entry to record the purchase on 18 January would include which of the following?

Quizplus · Accepted Answer

In a perpetual inventory system, inventory is constantly updated, and each purchase is recorded with a debit to the inventory account. Therefore, the journal entry to record the purchase on 18 January would include a debit to the Inventory account for $70,000.

Washington Warehouse Is a Small Retail Business That Specializes in the Sale