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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

FINANCIAL ACCOUNTING
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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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
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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