Use the Following Information for Questions

Multiple Choice

Use the following information for questions.
Tehran Ltd.uses FIFO to cost its inventory.The following information is available for Tehran's inventory of product # 101:
-Assuming Tehran uses the periodic inventory system, the entry to account for the March 1 purchase is

A) debit Inventory and credit Accounts Payable, $875.
B) debit Purchases and credit Accounts Payable, $875.
C) debit Accounts Payable and credit Purchases, $875.
D) debit Accounts Payable and credit Inventory, $875.