Post Utme Pan Atlantic University 2021 Accounting Question 3

Practice objective / multiple choice question 3 from the 2021 Post Utme Pan Atlantic University Accounting examination.

Post Utme Pan Atlantic University 2021 Accounting Objective / Multiple Choice
Question 3 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2021 • ACCOUNTING • objective

A company uses the perpetual inventory system. On 1 January 2020, the company had 100 units of Product A in inventory at a cost of 10 per unit. During the year, the company purchased 500 units of Product A at 12 per unit and sold 200 units at 20 per unit. Prepare the journal entry to record the purchase and sale of Product A.

Answer Options

Correct Answer A. Debit Purchase of Inventory 6,000, Credit Cash 6,000
B. Debit Purchase of Inventory 6,000, Credit Accounts Payable 6,000
C. Debit Sales Revenue 4,000, Credit Cost of Goods Sold 4,000
D. Debit Purchase of Inventory 6,000, Credit Accounts Receivable 6,000
Correct Answer
A
Correct Option:
Debit Purchase of Inventory 6,000, Credit Cash 6,000

About This Question

This is Post Utme Pan Atlantic University 2021 Accounting Question 3. It is one of the objective questions from the 2021 Post Utme Pan Atlantic University Accounting examination.

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