A company uses the perpetual inventory system and recorded the following entry This entry reflects a:
A) Purchase of merchandise on credit.
B) Return of merchandise.
C) Sale of merchandise on credit.
D) Payment of the account payable and recognition of a 2% cash discount taken.
E) Payment of the account payable and recognition of a 1% cash discount taken.

Question

A company uses the perpetual inventory system and recorded the following entry  This entry reflects a:
A) Purchase of merchandise on credit. 
B) Return of merchandise. 
C) Sale of merchandise on credit. 
D) Payment of the account payable and recognition of a 2% cash discount taken. 
E) Payment of the account payable and recognition of a 1% cash discount taken.

Quizplus · Accepted Answer

The Answer of A company uses the perpetual inventory system and recorded the following entry  This entry reflects a:
A) Purchase of merchandise on credit. 
B) Return of merchandise. 
C) Sale of merchandise on credit. 
D) Payment of the account payable and recognition of a 2% cash discount taken. 
E) Payment of the account payable and recognition of a 1% cash discount taken.

A Company Uses the Perpetual Inventory System and Recorded the Following