Purchase of merchandise on account on December 27, 2019 amounting to P50,000 was not recorded until it was paid on January 2020. The merchandise was properly included in the ending inventory in 2019. Questions: What is the adjusting entry at the end of 2019? What is the adjusting entry for 2020 if not adjusted during 2019? What are the accounts affected?
Purchase of merchandise on account on December 27, 2019 amounting to P50,000 was not recorded until it was paid on January 2020. The merchandise was properly included in the ending inventory in 2019. Questions: What is the adjusting entry at the end of 2019? What is the adjusting entry for 2020 if not adjusted during 2019? What are the accounts affected?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Purchase of merchandise on account on December 27, 2019 amounting to P50,000 was not recorded until it was paid on January 2020. The merchandise was properly included in the ending inventory in 2019.
Questions:
- What is the
adjusting entry at the end of 2019? - What is the adjusting entry for 2020 if not adjusted during 2019?
- What are the accounts affected?
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