A retailer returns $400 worth of inventory to a manufacturer and receives a full refund. Whataccounts recognize this return before the retailer remits payment to the manufacturer?A. accounts payable, merchandise inventoryB. accounts payable, cashC. cash, merchandise inventoryD. merchandise inventory, cost of goods sold

Q: Mr. Mohammed use perpetual inventory system makes the following journal entry in his business Debit…

A: Merchadise inventory is debited and Accounts payable is credited where  inventory is purchased on…

Q: In a periodic accounting system, Purchases of merchandise are Multiple Choice O O O debited to…

A: As per the periodic inventory system, the inventories are recognized at the end of the accounting…

Q: Journalize the following merchandise transactions. The company uses the perpetual inventory system.…

A: Perpetual inventory system: It is a method of inventory management that records real time…

Q: The cost of goods on hand and available for sale at any given time and treated as a current asset…

A: The cost of goods available on hand is an asset.

Q: If a wholesale company provides a discount to NetSolutions for early payment of purchases of…

A: Purchase discount is discount availed by purchaser on early payment of purchases of merchandise on…

Q: When using a perpetual inventory system, the journal entry to record the cost of goods sold is:…

A: Perpetual inventory system reports the inventory units on regular basis.

Q: On 3/1, a company buys $5,000 of merchandise with terms 2/10, n/15. On 3/7, the company returns $500…

A: >Journal entries are used to record transaction.>Purchase transaction is recorded byDebiting…

Q: The journal entry to record the payment of merchandise on account with a discount under the Periodic…

A: Periodic inventory method: It is a inventory valuation method. In this method inventory account is…

Q: Advanced Computer Parts uses the perpetual inventory system and the net method of recording sales…

A: The objective of the question is to determine the correct journal entry to record the payment…

Q: Determine which of the following statements about merchandise is correct.

A: Merchandise inventory: Merchandise inventory is the inventory purchased by company for the purpose…

Q: retailer assuming that if the retailer made the payment within the discount period? a. RO 78,400 b.…

A: Discount on payment = invoice price x discount rate = RO 80,000 x 2% = RO 1,600

Q: Which journal entry is correct when there is a sale under a perpetual inventory and FOB shipping…

A: Solution- Accounts payable -------------------DR                 To Merchandise inventory. (To…

Q: (To record sales returns) Accounts Receivable Purchase Returns and Allowances (To record cost of…

A: The procedure via which a customer returns previously acquired goods to a business is known as a…

Q: Using T accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases…

A: T-account: The condensed form of a ledger is referred to as T-account. The left-hand side of this…

Q: Journalize the following transactions for the buyer, Martin Company, using the net method to account…

A: Purchase discount is the discount which is allowed on purchases made during the period. Credit terms…

Q: ssuming that you are a retail merchandiser. You bought goods from wholesale merchandiser under the…

A: Note: 2/10, n/30: Here, 2 represent the discount rate if payment is made within ten days. And if…

Q: If a company uses a purchase discount account, the cost recorded when inventory is purchases is its

A: Detailed explanation:Purchase discount is the discount received when a company pays its account…

Q: When a proprietor takes goods for own use, we will record it as:…

A: Every transaction of business is recorded as journal entry in the books.

Q: When merchandise that was sold is returned, a credit to sales returns and allowances is made by the…

A: As per perpetual inventory system, inventory records are updated after every transaction.  When…

Q: 7. Company A records purchases using the net price method. It an item is purchased from a supplier…

A: Under the net method, purchases are recorded at the discounted price. Purchase discount is not…

Q: Using T accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases…

A:

Q: Amex Stores should include which of the following items in its inventory at the statement of…

A: solution concept we should always consider the following points while valuing the inventory goods…

Q: The following accounts are included in the ledger of David Company: Advertising expense Freight-in…

A: Cost of goods sold = Beginning inventory + Net purchases + Direct expenses - Ending inventory

Q: When using the perpetual system for inventory, the journal entry to record a purchase of inventory…

A: The objective of the question is to identify the correct journal entry to record a purchase of…

Q: Advanced Computer Parts uses the perpetual inventory system and the net method of recording sales…

A: The objective of the question is to determine the correct journal entry to record the payment…

Q: Mr. Ameen use periodic inventory system makes the following journal entry in his business: Debit…

A: Under the periodic inventory system, cost if goods sold are calculated at the end of the period.…

Q: Journalize the following merchandise transactions: a. Sold merchandise on account, $21,950 with…

A: The objective of this question is to journalize the given merchandise transactions. Journalizing is…

Q: An item of merchandise was sold for RO 1600 cash by a business using the perpetual inventory system.…

A: Cost of goods sold is RO 1200. Inventory (asset) of RO 1200 has been decreased and cost of goods…

Q: The journal entry to record a Purchase of Merchandise Inventory from Supplier for cash under…

A: As per the periodic inventory method, all the inventory related transactions are recorded through…

Q: Accounting-201 1. Under a perpetual inventory system part of the merchandise purchased on account at…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A retailer pays on credit for $650 worth of inventory, terms 3/10, n/40. If the merchandiser pays…

A: Formula used: Cash paid to manufacturer = Invoice amount - Discount amount

Q: coupons were presented for redemption in 2020. It is estimated that 60% ption.

A: Answer : Journal entries : Date Account title Dr. Cr. 2020 Inventory of premiums $7,050…

Q: What is the correct entry to write off the inventory under perpetual method? Dr. Cost of Goods sold…

A: The Perpetual Inventory System is a highly preferred system as it can produce accurate results…

Q: The normal balance of the following accounts is a debit Multiple Choice Sales returns and…

A: Understanding the normal balance of accounts is crucial in accounting as it helps in proper…

Q: In recording the cost of goods sold based on data available from perpetual inventory records, the…

A: The inventory method is allocated into two categories i.e. perpetual inventory system and periodic…

Q: 31. Under a perpetual inventory system, a.a physical count is required to determine cost of…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: Define the following: Cost of goods sold

A: Since we are allowed to answer only three sub-parts of the question, I am answering only three for…

Q: A Retail Merchandiser was using Perpetual inventory method. The business bought OMR 40,000 of…

A: An entity can either use the periodic inventory method or the perpetual inventory method to record…

Q: Ameen LLC sold goods of OMR 7150 on account. The entry to record the sales the entry will be

A: What is a journal entry? A journal entry is record of any transaction that takes place in a company.…

Q: When inventory is purchased on credit with terms FOB shipping point, what does the buyer do?…

A: Lets understand the basics. Seller sells goods to buyer either on cash or using credit basis. Seller…

Q: invoice included merchandise price, $5,400; transportation, $200; terms hyeom, FOB shipping point.…

A: Net Sales = Sales - sales Returned  Cash received by seller = net sales + transportation cost

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is