If a company is using a perpetual inventory system, which of the following entries is the correct journal entry to record the purchase of $10,000 of merchandise on account?
A. Dr. Inventory $\quad 10,000$
$\quad$ Cr. Accounts payable $\quad 10,000$
B. Dr. Inventory $\quad 10,000$
$\quad$Cr. Purchases $\quad 10,000$
C. Dr. Purchases $\quad 10,000$
$\quad$Cr. Inventory $\quad$10,000
D. Dr. Purchases $\quad 10,000$
$\quad$Cr. Accounts payable $\quad 10,000$
A)Option A
B)Option B
C)Option C
D)Option D

Question

If a company is using a perpetual inventory system, which of the following entries is the correct journal entry to record the purchase of $10,000 of merchandise on account? 
A. Dr. Inventory $\quad 10,000$
$\quad$ Cr. Accounts payable $\quad 10,000$
B. Dr. Inventory $\quad 10,000$ 
$\quad$Cr. Purchases $\quad 10,000$
C. Dr. Purchases $\quad 10,000$ 
$\quad$Cr. Inventory $\quad$10,000
D. Dr. Purchases $\quad 10,000$ 
$\quad$Cr. Accounts payable $\quad 10,000$
A)Option A
B)Option B
C)Option C
D)Option D

Quizplus · Accepted Answer

Under a perpetual inventory system, the purchase of inventory is directly recorded in the Inventory account. Therefore, when merchandise is purchased on account, Inventory is debited and Accounts Payable is credited, making Option A the correct choice.

If a Company Is Using a Perpetual Inventory System, Which 10,000\quad 10,00010,000

If a Company Is Using a Perpetual Inventory System, Which $\quad 10,000$