Cumberland Co. sells $2,000 of merchandise to Hancock Co. for cash. Cumberland paid $1,250 for the merchandise. Under a perpetual inventory system, which of the following is the correct journal entry(ies)? a.debit Cash, $2,000; credit Merchandise Inventory, $2,000  b.debit Accounts Receivable, $2,000; credit Sales, $2,000; and debit Cost of Merchandise Sold, $1,250; credit Merchandise Inventory, $1,250 c.debit Cash, $1,250; credit Sales, $1,250 d.debit Cash, $2,000; credit Sales, $2,000; and debit Cost of Merchandise Sold, $1,250; credit Merchandise Inventory, $1,250

Q: Pierce Company sold merchandise on account to Stanton Company, terms FOB shipping point, / 30, for…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Levine Company uses the perpetual inventory system. Prepare journal entries to record the following…

A: Journalize the entries as below: In the books of Levine Company

Q: Orange Co. sold Red Co. merchandise on account FOB shipping point, 2/10, net 30, for 10,000. Orange…

A: Cost of purchase of Inventory           10,000 Add: Shipping Charges                 200 Total…

Q: Prepare the Journal Entries for the following purchase transactions: I. Purchase of merchandise…

A: Journal entries recording is termed as first step in accounting cycle proces, in which atleast one…

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

A:

Q: Merchandise with a sales price of $3,000 is sold on account with terms 2/10, n/30. The journal entry…

A: Journal entries refer to the recording of transaction in an appropriate way. With the help of…

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

A: Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains…

Q: Purchase-Related Transactions Oppenheimer Company purchased merchandise on account from a supplier…

A: Discount is a benefit offered by a seller to the buyer for the payment done within the time period…

Q: Levine Company uses the perpetual inventory system. April 8 Sold merchandise for $3,400 (that had…

A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: Record the following transactions for a perpetual inventory system in general journal form. Round…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: The entry to record the sale of $20,000 of merchandise on account with cost of $14,000, would…

A: Sale of goods on credit Accounts receivable a/c or debtors a/c debit $20,000  To sales a/c $20,000…

Q: $2,100; Inventory, $700 $2,100; Cost of Goods Sold, $1,400 $2,100; Cost of Goods Sold, $700

A: Perpetual inventory is an accounting method that uses a computerised point-of-sale (POS) system to…

Q: Assume the perpetual inventory method is used. The company purchased $12,700 of merchandise on…

A: The perpetual inventory method is one of the method in which record of inventory is maintained…

Q: Levine Company uses the perpetual inventory system.   April 8 Sold merchandise for $8,700 (that had…

A: Introduction: - Journal entry is the first stage of accounting process. Journal entry used to record…

Q: Jun. 1 Sold merchandise inventory on account to Coyle Company, $1,510. Jun. 6 Sold merchandise…

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

Q: Based on the information below: a. Seller sold merchandise on account to the buyer, $4,750, terms…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: Concord Company made a purchase of merchandise on credit from Ivanhoe Company on August 8, for…

A: On date of sale accounts payable  is $9700

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