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?

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?

a.

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

b.

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

c.

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

d.

None of the above

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