A company using a perpetual inventory system made the following entry: What does this entry reflect?
A)A purchase of inventory at a discount.
B)A return of inventory for credit.
C)A sale of inventory on account.
D)A payment within the discount period for inventory previously purchased on credit.

Question

A company using a perpetual inventory system made the following entry:  What does this entry reflect?
A)A purchase of inventory at a discount. 
B)A return of inventory for credit. 
C)A sale of inventory on account. 
D)A payment within the discount period for inventory previously purchased on credit.

Quizplus · Accepted Answer

The code "TB5351_00" suggests that this is a payment transaction, and the "11eac062_2a8a_5be6_9623_11ade325a9ba" is likely a transaction ID or reference number. The fact that the payment was made within the discount period indicates that the company received a discount for their timely payment of inventory previously purchased on credit.

A Company Using a Perpetual Inventory System Made the Following