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Oracle

1Z0-520 · Question #60

Consider the following scenario for inventory item A: 1) Standard Cost $10 Purchase Order Line Price: $12, Purchase Order Line Quantity: 10 2) Receipt Routing: Direct Delivery You created a receipt…

The correct answer is B. Debit Material Account $80; Credit Inventory AP Accrual Account $96. See the full explanation below for the reasoning.

Question

Consider the following scenario for inventory item A: 1) Standard Cost $10 Purchase Order Line Price: $12, Purchase Order Line Quantity: 10 2) Receipt Routing: Direct Delivery You created a receipt of 8 units for item A. Which option correctly describes the effect on different accounts?

Options

  • ADebit Material Account $80; Credit Inventory AP Accrual Account $96;
  • BDebit Material Account $80; Credit Inventory AP Accrual Account $96;
  • CDebit Material Account $80; Credit Inventory AP Accrual Account $80;
  • DCredit Material Account $80; Debit Inventory AP Accrual Account $96;
  • EDebit Material Account $96; Credit Inventory AP Accrual Account $96;

How the community answered

(37 responses)
  • A
    11% (4)
  • B
    81% (30)
  • D
    5% (2)
  • E
    3% (1)

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