Answered: Inventory taken by the owner of the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 11MC: Which of the following describes features of a perpetual inventory system? A. Technology is normally...

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Inventory taken by the owner of the entity for personal use, will affect which of the following accounts and subsidiary journal, if the entity uses the periodic inventory system?

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The drawings account will decrease, while the purchases account increases, and the inventory taken by the owner for personal use will be recorded in the general journal at cost price.

The drawings account will increase, while the inventory account will decrease, and the inventory taken by the owner for personal use will be recorded in the general journal at cost price.

The drawings account will decrease, while the inventory account increases, and the inventory taken by the owner for personal use will be recorded in the general journal at cost price.

The drawings account will increase, while the purchases account decreases, and the inventory taken by the owner for personal use will be recorded in the general journal at cost price.

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