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QUESTION 45 Anders uses the perpetual On May 1. Anders Company purchased merchandise in the amount of 55.800 from Shiling wit

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Answer #1

Amount of inventory purchased = $5,800

On May 1, inventory was purchased on account.

Under the perpetual method, when inventory is purchased, merchandise inventory is debited.

Under the periodic method, when inventory is purchased, purchase account is debited.

Since inventory was purchased on account, accounts payable will be credited.

Hence, correct option is (B)

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