Parker Company uses the perpetual inventory system. It bought merchandise on account from Beige Inc, invoice no. 342, $20,000; terms 1/15, n/30; dated June 25; FOB San Francisco, freight prepaid and added to the invoice, $1,800 (total $21,800). Which of the following journal entries records this purchase transaction?
a. A debit to Merchandise Inventory of $23,600, a credit to Accounts Payable of $23,600
b. A debit to Merchandise Inventory of $21,800, a credit to Accounts Payable of $21,800
c. A debit to Merchandise Inventory of $20,000, a debit to Freight of $1,800, a credit to Accounts Payable of $21,800
d. A debit to Cost of Goods Purchased of $20,000, a debit to Freight Out of $1,800, a credit to Accounts Payable of $21,800
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Parker Company uses the perpetual inventory system. It bought merchandise on account from Beige Inc, invoice no. 342, $20,000; terms 1/15, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
All of the following are advantages of using the services of an investment company except: A. professional management. B. diversification. C. ease in selling shares. D. insurance protection against loss of principal.
Answers (1)
A principle purpose of the market model is to show how equilibrium price and quantity will change as a result of some 'exogenous shock'--for instance, an increase in demand causes equilibrium price and quantity to increase.
Answers (1)
Why is the uninoculated control sector relatively unnecessary in this test dnase?
Answers (1)
Marketing intermediaries that solicit orders from retailers or other wholesalers and have the products delivered directly from the producer to the buyer are known as:
Answers (1)
The following is a partial year-end adjusted trial balance. Account Title Debits Credits Sales revenue 300,000 Loss on sale of investments 22,000 Interest revenue 4,000 Cost of goods sold 160,000 General and administrative expenses 40,000
Answers (1)
New Questions in Business
On January 1, 2021, a company issues $800,000 of 8% bonds, due in ten years, with interest payable semi annually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $856,850.
Answers (1)
Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. Each racket was sold at a price of $90.
Answers (1)
In the resource-based model of above-average returns, a capability is: a. an input into a firm's production process. b. the foundation for a firm's mission. c.
Answers (1)
Choose the correct statementA. Total revenue from the sale of a good equals the price of the good multiplied by the quantity sold. B. A rise in price increases total revenue. C. A rise in the price decreases total revenue. D.
Answers (1)
Which describes the purpose of minimum-balance fees? O make sure customers keep sufficient funds in their account collect funds for withdrawals from a competitor's machine pay for the costs of having bank employees penalize customers for writing
Answers (1)