Multiple Choice
A firm uses the periodic inventory method.Which of the following entries would be made to record a purchase of inventory on credit?
A) The accounting entry would be a debit to Accounts payable,a credit to Inventory and a credit to GST clearing.
B) The accounting entry would be a debit to Inventory,a debit to GST clearing and a credit to Accounts payable.
C) The accounting entry would be a debit to Accounts payable,a credit to Purchases and a credit to GST clearing.
D) The accounting entry would be a debit to Purchases,a debit to GST clearing and a credit to Accounts payable.
Correct Answer:
Verified
Correct Answer:
Verified
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