Reference no: EM132650516

Question 1: The journal entry for the receipt of inventory purchased for cash in a perpetual inventory system would be

Select one:

a. Jan. 1 Merchandise Inventory 1,500
Cash 1,500

b. Jan. 1 Office Supplies 1,500
Cash 1,500

c. Jan. 1 Purchases 1,500
Accounts Payable 1,500

d. Jan. 1 Cash 1,500
Accounts Receivable 1,500

Question 2: Two methods of accounting for uncollectible accounts are the

Select one:

a. direct write-off method and the allowance method
b. allowance method and the accrual method
c. allowance method and the net realizable method
d. direct write-off method and the accrual method

Question 3: Under the _____ inventory method, accounting records maintain a continuously updated inventory value.

Select one:

a. retail
b. periodic
c. physical
d. perpetual