54. An Entity buys a merchandise for P10,000 which include a VAT. It sells the same article for P13,000. The entry to record the purchase of merchandise and the sale of the same merchandise are A. Debit: Purchases; Credit: Cash and Input Tax for the purchase of merchandise Debit: Cash, and Output Tax; Cr: Sales for sale of the merchandise B. Debit: Purchases and Input Tax; Credit:Cash for the purchase of merchandise Debit: Cash, and Output Tax; Credit: Sales for the sale of merchandise C. Debit: Purchases and Input Tax; Credit Cash for the purchase of merchandise Debit: Cash; Credit: Sales and Output Tax for the sale of merchandise D. Debit: Cash and Input Tax; Credit: Purchases for the purchase of merchandise Debit: Sales; Credit Cash and Output Tax for the sale of merchandise
54. An Entity buys a merchandise for P10,000 which include a VAT. It sells the same article for P13,000. The entry to record the purchase of merchandise and the sale of the same merchandise are A. Debit: Purchases; Credit: Cash and Input Tax for the purchase of merchandise Debit: Cash, and Output Tax; Cr: Sales for sale of the merchandise B. Debit: Purchases and Input Tax; Credit:Cash for the purchase of merchandise Debit: Cash, and Output Tax; Credit: Sales for the sale of merchandise C. Debit: Purchases and Input Tax; Credit Cash for the purchase of merchandise Debit: Cash; Credit: Sales and Output Tax for the sale of merchandise D. Debit: Cash and Input Tax; Credit: Purchases for the purchase of merchandise Debit: Sales; Credit Cash and Output Tax for the sale of merchandise
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:54. An Entity buys a merchandise for
P10,000 which include a VAT. It sells
the same article for P13,000. The
entry to record the purchase of
merchandise and the sale of the same
merchandise are *
A. Debit: Purchases; Credit: Cash and Input
Tax for the purchase of merchandise Debit:
Cash, and Output Tax; Cr: Sales for sale of
the merchandise
B. Debit: Purchases and Input Tax;
Credit:Cash for the purchase of
merchandise Debit: Cash, and Output Tax3;
Credit: Sales for the sale of merchandise
C. Debit: Purchases and Input Tax; Credit
Cash for the purchase of merchandise
Debit: Cash; Credit: Sales and Output Tax
for the sale of merchandise
D. Debit: Cash and Input Tax; Credit:
Purchases for the purchase of merchandise
Debit: Sales; Credit Cash and Output Tax for
the sale of merchandise
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