Solved

Under the Perpetual Inventory System What Is the Correct Entry

Question 31

Multiple Choice

Under the perpetual inventory system what is the correct entry for the credit purchase of 5 washing machines at $300 per washing machine plus GST of $30 each?


A) Debit Inventory $1,650; Credit Accounts payable $1,500, Credit GST $150
B) Debit Inventory $1,650; Credit Accounts payable $1,650
C) Debit Accounts payable $1,650; Credit Inventory $1,500, Credit GST $150
D) Debit Inventory $1,500, Debit GST $150; Credit Accounts payable $1,650

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions