Question
Poobah Company enters into a purchase commitment agreement to purchase 100 tons of coal in 24 months for $1,000,000. Pick the accounts that they would
Poobah Company enters into a purchase commitment agreement to purchase 100 tons of coal in 24 months for $1,000,000. Pick the accounts that they would debit and credit from this transaction.
Group of answer choices
Credit Purchase Commitment Liability
Credit "nothing"
Debit Inventory Allowance
Debit Inventory Due
Debit "nothing"
Credit Inventory Allowance
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QS 9000 Handbook A Guide To Registration And Audit
Authors: Jayanta Bandyopadhyay
1st Edition
157444011X, 978-1574440119
