Use the following information for the following questions:
Windsor Ltd. uses FIFO to cost its inventory. The following information is available for Windsor's inventory of product # 205:
Beginning inventory: $\quad 240$ units $@ \$ 5.28$ per unit
March 1:$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $Purchase of 500 units $@ \$ 5.00$ per unit
April 10:$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $Sale of 200 units $@ \$ 10.20$ per unit
-Assuming Windsor uses the periodic inventory system, the entry to account for the March 1 purchase is
A) debit Inventory and credit Accounts Payable, $3,500.
B) debit Purchases and credit Accounts Payable, $3,500.
C) debit Accounts Payable and credit Purchases, $3,500.
D) debit Accounts Payable and credit Inventory, $3,500.

Question

Use the following information for the following questions:
Windsor Ltd. uses FIFO to cost its inventory. The following information is available for Windsor's inventory of product # 205:
 Beginning inventory: $\quad 240$ units $@ \$ 5.28$ per unit
March 1:$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $Purchase of 500 units $@ \$ 5.00$ per unit
April 10:$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $Sale of 200 units $@ \$ 10.20$ per unit
-Assuming Windsor uses the periodic inventory system, the entry to account for the March 1 purchase is
A) debit Inventory and credit Accounts Payable, $3,500.
B) debit Purchases and credit Accounts Payable, $3,500.
C) debit Accounts Payable and credit Purchases, $3,500.
D) debit Accounts Payable and credit Inventory, $3,500.

Quizplus · Accepted Answer

Under the periodic inventory system, the purchase of inventory is recorded through the Purchases account. Therefore, the entry for the March 1 purchase would be to debit Purchases and credit Accounts Payable for $3,500.

Use the Following Information for the Following Questions: Windsor Ltd 240\quad 240240

Use the Following Information for the Following Questions:
Windsor Ltd $\quad 240$