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Under the Perpetual Inventory System, What Is the Entry for the Credit

Question 61

Multiple Choice

Under the perpetual inventory system, what is the entry for the credit purchase of 10 violins at $600 each plus 10% GST?


A) DR Inventory $6600; CR Accounts payable $6000; CR GST payable $600
B) DR Inventory $6000; DR GST receivable $600; CR Accounts payable $6600
C) DR Inventory $6600; CR Accounts payable $6600
D) DR Inventory $6000; CR Accounts payable $5400; CR GST payable $600

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