Blaise

Business

9 May, 00:11

Washington Warehouse is a small retail business that specializes in the sale of top-of-the-line televisions. This year, the store has begun to carry the Flat TV manufactured by Bass Co. Thus far, Washington has recorded the following transactions involving the Flat TV:

Jan. 5 Purchased 8 Flat TVs at a unit cost of $1,400

Jan. 18 Purchased 5 additional Flat TVs at $1,400 each

Feb. 12 Sold 9Flat TVs to the Duke Hotel for $15,300

If Washington uses a perpetual inventory system, the journalentry to record the purchase on January 18th would include which ofthe following?

A. A debit to the Purchases account for $38,250.

B. A debit to the Cost of Goods Sold for $38,250.

C. A credit toInventory for $38,250.

D. A debit to Inventory for $38,250.