Multiple Choice
On June 1, Kennedy Company purchased $8,000 of inventory on account from Sterner Company. Sterner Company offers a 5% discount if payment is received within 15 days. Kennedy Company records the purchase using the net method and the perpetual inventory system. The journal entry on June 1 by Kennedy Company includes ________.
A) a debit to Inventory for $8,000
B) a credit to Accounts Payable for $8,000
C) a credit to Cash for $7,600
D) a debit to Inventory for $7,600
Correct Answer:
Verified
Correct Answer:
Verified
Q32: A company uses the basic retail
Q33: Jamison Company sells goods to Matthews Company.
Q34: The inventory turnover ratio equals _.<br>A) cost
Q35: The following information is available for
Q36: When inventory costs are falling, and inventory
Q38: Christian Company uses the gross method of
Q39: When writing down the inventory to market
Q40: The moving-average method of determining inventory is
Q41: What are the advantages of using dollar-value
Q42: The Henry Store has the following