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poizon [28]
3 years ago
10

Which of the following entries would be made to record the purchase of inventory on account, if a company uses the perpetual inv

entory system?
A) a debit to Accounts Payable and a credit to Purchases

B) a debit to Accounts Payable and a credit to Merchandise Inventory

C) a debit to Merchandise Inventory and a credit to Accounts Payable

D) a debit to Purchases and a credit to Accounts Payable
Business
1 answer:
jekas [21]3 years ago
4 0

Answer:

C) a debit to Merchandise Inventory and a credit to Accounts Payable

Explanation:

The journal entry to record the purchase of inventory on account by using the perpetual inventory system is shown below:

Merchandise Inventory A/c Dr XXXXX

      To Accounts Payable A/c               XXXXX

(Being merchandise is purchase on credit)

Simply we debited the merchandise inventory account and credited the account payable account so that the correct posting can be done.

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