Under the perpetual inventory system, what is the entry for the credit purchase of 10 electric guitars at $250 per guitar plus GST of $25 each?
A) Debit inventory $2750; credit accounts payable $2500; credit GST outlays $250
B) Debit inventory $2500; debit GST outlays $250; credit accounts payable $2750
C) Debit inventory $2750; credit accounts payable $2750
D) Credit accounts payable $2750; debit inventory $2500; credit GST collections $250
Correct Answer:
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