Question

am r o mpatibility Mode - Word erencesM aiings Review View Help Grammarly 8) A modem perpetual inventory system A) is required by U.S. GAAP. B) achieves better control over Inventory C) records the quantity, but not the cost of merchandise inventory on hand D) eliminates the need for a physical count of Inventory 9) 9) Which of the following entries would be made to record the purchase of inventory on account if a company uses the perpetual inventory system? A) a debit to Accounts Payable and a credit to Merchandise Inventory B) a debit to Merchandise Inventory and a credit to Accounts Payable C) a debit to Purchases and a credit to Accounts Payable D) a debit to Accounts Payable and a credit to Purchases 10) What does "2/10" mean, with respect to "credit terms of 2/10, 1/30? A) Interest of 2 percent will be charged if the invoice is paid after 10 days from the date on the invoice. B) Interest of 10 percent will be charged if invoice is paid after two days. C) A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date. D) A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date 11 11) A company that uses the perpetual inventory system purchases inventory for $64,000 on account, with terms of 2/10, 130. Which of the following is the journal entry to record the payment made within 10 days? A) a debit to Accounts Payable for $62,720, a debit to Merchandise Inventory for $1280, and a credit to Cash for $64,000 D Focus Ota $ ftae hp)

Answer 1

8) (B) Achieves better control over inventory.

9) (B) a debit to Merchandise Inventory and credit to Accounts payable

10) (D) a discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date.