1. Under the perpetual inventory system, the entry to record a purchase of merchandise for $13,000 on accounts, term of 2/10, n/30 would include a: a. debit to accounts payable for $13,000 b. credit to merchandise inventory for $13,000 c. credit to accounts payable for $13,000

2. A debit memorandum decrease which account on the buyers book? a. accounts receivable b. sale discount c. accounts payable

3. ABC company uses the perpetual inventory method. The entry to record a payment within the 5% discount period for inventory purchase on accounts for $600 would include a: a. a debit to cash for $600 b. debit to merchandise inventory for $570 c. debit to accounts payable for $600

4. The buyers returns merchandise purchased on accounts. The merchandise was not paid for yet. the perpetual inventory system is in use. This will be recorded with a. a debit to liability and a credit to an expense b. a debit to an expense and a credit to liability c. a debit to a liability and a credit to asset