Question: Under the perpetual inventory system what is the correct entry for the credit purchase of 5 washing machines at $300 per washing machine plus GST

  1. Under the perpetual inventory system what is the correct entry for the credit purchase of 5 washing machines at $300 per washing machine plus GST of $30 each?

    a.

    Debit Inventory $1,500, debit GST paid $150; credit Accounts payable $1,650

    b.

    Debit Inventory $1,650; credit Accounts payable $1,650

    c.

    Debit Accounts payable $1,650; credit Inventory $1,500; credit GST paid $150

    d.

    Debit Inventory $1,650; credit Accounts payable $1,500, credit GST paid $150

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