$20,500 will be debited to Inventory, $20,000 will be credited to Accounts Payable, and $500 will be creditedto Cash.$20,000 will be credited to Inventory and $20,000 will be credited to Purchases.$20,000 will be debited to Inventory and $20,000 will be credited to Cash.$20,500 will be debited to costs of goods sold and $20,500 will be credited to Accounts Payable. An electronics retailer purchases $20,000 of computers for resale. The retailer spends $500 in cash for transportation cost.Under a perpetual inventory system the journal entry to record the purchase will include:Multiple Choice

Introduction: Recording of a business transactions in a chronological order. First step in the…

38Ve & An electronics retailer purchases $20,000 of computers for resale. The retailer spends $500 in cash for transportation cost Under a perpetual inventory system the journal entry to record the purchase will include: Multiple Choice

38Ve & An electronics retailer purchases $20,000 of computers for resale. The retailer spends $500 in cash for transportation cost Under a perpetual inventory system the journal entry to record the purchase will include: Multiple Choice

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

$20,500 will be debited to Inventory, $20,000 will be credited to Accounts Payable, and $500 will be credited
to Cash.
$20,000 will be credited to Inventory and $20,000 will be credited to Purchases.
$20,000 will be debited to Inventory and $20,000 will be credited to Cash.
$20,500 will be debited to costs of goods sold and $20,500 will be credited to Accounts Payable.

An electronics retailer purchases $20,000 of computers for resale. The retailer spends $500 in cash for transportation cost.
Under a perpetual inventory system the journal entry to record the purchase will include:
Multiple Choice

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Required: Prepare Merchandising Journal Entries using Perpetual and Periodic Inventory System.
T Select all that apply X-Mart uses the perpetual inventory system to account for its merchandise. On June 1, it sold $7,000 of merchandise for cash. The original cost of the merchandise to X-Mart was $500. Demonstrate the required journal entry to record the sale and the cost of the sale by selecting all of the correct actions below. (Check all that apply.) Debit Sales $7,000. Debit Cash $7,000. Credit Sales $7,000. Credit Cost of Goods Sold $500. Debit Cost of Goods Sold $500. Debit Merchandise Inventory $500. Credit Cash $7,000. Credit Merchandise Inventory $500.
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