Assume a Perpetual Inventory System

Multiple Choice

Assume a perpetual inventory system. A purchase on credit for $1 650 including 10% GST would be recorded in the purchases journal as:

A) debit to inventory $1 500, debit to GST clearing account $150, credit to accounts payable $1 650.
B) debit to inventory $1 500, credit to accounts payable $1 500.
C) debit to inventory $1 650, credit to GST clearing account $150, credit to accounts payable $1 500.
D) none of the above