For a company using a perpetual inventory system, the journal entry to record the purchase of $3,500 of goods on account, with terms of 4/10, n/30, would include a
A) debit to Accounts Payable of $3,500.
B) credit to Accounts Payable of $3,360.
C) debit to Inventory of $3,360.
D) debit to Inventory of $3,500.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, purchases are recorded directly in the Inventory account. The purchase of $3,500 of goods on account would be recorded as a debit to Inventory for the full amount of $3,500.

For a Company Using a Perpetual Inventory System, the Journal