A firm uses the perpetual inventory method.Which of the following entries would be made to record a purchase of inventory on credit?
A) The accounting entry would be a debit to Accounts payable and GST clearing and a credit to Inventory.
B) The accounting entry would be a debit to Accounts payable and a credit to Purchases and GST Clearing.
C) The accounting entry would be a debit to Purchases and GST clearing and a credit to Accounts payable.
D) The accounting entry would be a debit to Inventory and GST clearing and a credit to Accounts payable.
Correct Answer:
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Q1: HiLo Running Store is not registered for
Q2: ABC Ltd has made credit sales of
Q3: GST is a flat percentage charge levied
Q5: What is freight out?
A)Transportation costs to ship
Q6: The perpetual inventory system keeps a running
Q7: The GST payable to the ATO represents
Q8: Under a perpetual inventory system,which of the
Q9: In a periodic system,inventory balances and the
Q10: When a firm uses the perpetual inventory
Q11: What is a purchase return?
A)A return of
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