1- The Wilson Company purchased $29,000 of merchandise from the Poole Wholesale Company. Wilson also paid $2,200 for freight costs to have the goods shipped to its location. Which of the following statements regarding the necessary entries for the transactions is true? Wilson uses the perpetual inventory system.

  

A)Total debits to the inventory account would be $29,000.

B)Total debits to the inventory account would be $31,200.
C)Total debits to the inventory account would be $31,200.

D) Transportation-in would be debited for $2,200.

The following general journal entry is taken from the journal of Becker's Bookstore:

  Question 2 

Transportation-out	198
Cash		198

Which of the following choices reflects how the entry will affect the company's financial statements?

 

	Assets	=	Liab.	+	Equity	Rev.	-	Exp.	=	Net Inc.	Cash Flow
A.	-	=	NA	+	-	NA	-	+	=	-	-OA
B.	-	=	NA	+	-	NA	-	+	=	-	NA
C.	+-	=	NA	+	NA	+	-	NA	=	+	-OA
D.	-	=	NA	+	-	-	-	NA	=	-	-OA

Option B Option A Option D Option C

Answer rating: 100% (QA)

Question 1 Wilson Company The correct answer is D Transportationin would be debited for 2200 Heres w... View the full answer