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Business, 05.05.2020 22:11 Aliciaonfleek
Washington Warehouse is a small retail business that specializes in the sale of top-of-the-line televisions. This year, the store has begun to carry the Flat TV manufactured by Bass Co. Thus far, Washington has recorded the following transactions involving the Flat TV:
Jan. 5 Purchased 8 Flat TVs at a unit cost of $1,400
Jan.18 Purchased 5 additional Flat TVs at $1,400 each
Feb. 12 Sold 9Flat TVs to the Duke Hotel for $15,300
If Washington uses a perpetual inventory system, the journalentry to record the purchase on January 18th would include which ofthe following?
A. A debit to the Purchases account for $38,250.
B. A debit to the Cost of Goods Sold for $38,250.
C. A credit toInventory for $38,250.
D. A debit to Inventory for $38,250.
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Answers: 3
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