Iowa Cattle Company Uses a Perpetual Inventory System

Multiple Choice

Iowa Cattle Company uses a perpetual inventory system.Iowa purchased cattle from Big D Ranch at a cost of $19,500,payable at time of delivery.The entry to record the delivery would be

A) Purchases ...........................19,500
Accounts Payable ..................19,500
B) Inventory ...........................19,500
Accounts Payable ..................19,500
C) Purchases ...........................19,500
Cash ..............................19,500
D) Inventory ...........................19,500
Cash ..............................19,500