QUESTION 6 When a buyer returns merchandise purchased on account, the buyer will record the transaction as a a. debit to Merchandise Inventory; a credit to Cash b. debit to Sales; a credit to Accounts Payable c. debit to Accounts Payable; a credit to Merchandise Inventory d. debit to Cash; a credit to Sales

QUESTION 6 When a buyer returns merchandise purchased on account, the buyer will record the transaction as a a. debit to Merchandise Inventory; a credit to Cash b. debit to Sales; a credit to Accounts Payable c. debit to Accounts Payable; a credit to Merchandise Inventory d. debit to Cash; a credit to Sales

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: moWhen recording a purchase of inventory on credit, which accounts are typically affected? A)…

A: Under double entry system of book keeping one account is debited and other is credited.The Assets…

Q: The elimination entry under the perpetual inventory system for intercompany sales is a debit to…

A: SOLUTION- THE ELIMINATION ENTRY REMOVES IC SALES FROM THE CONS. UNIT (VENDOR) AND IC PURCHASE FROM…

Q: QUESTION 1 Merchandise inventory is classified on the balanc a. long-term asset b. current liability…

A: In business there is need of inventory without maintaining sufficient inventory business can not be…

Q: Pit Corporation owns 90% of Stop Company's outstanding common stock. On 07/01/20, Pit sold inventory…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: Which of the following best explains inventory shrinkage under the perpetual inventory system? Oa.…

A: Inventory shrinkage is the loss of stock of any product as a result of unforeseen or unanticipated…

Q: Which of the following journal entries would you record to recognize the sale of inventory on…

A: (1) Debit what comes in, Credit what goes out. (2) Debit all expenses and losses, Credit all…

Q: What effects on a retail store's accounting equation occur when merchandise returned by customers is…

A: Introduction:- The following Accounting Equation used for preparation of balance sheet as follows…

Q: Which of the following journal entries is appropiate when a credit sales is made under a perpetual…

A: Under the perpetual inventory method, we need to record sales and also the cost of goods sold.

Q: 4. Which of the following accounts are used when recording a purchase?

A: 1. If Cash purchase: If the purchase is made out of cash, both cash and inventory accounts are used…

Q: If title to merchandise purchases passes to the buyer when the goods are shipped from the seller,…

A: FOB means freight on board FOB shipping point means the buyer is the legal owner of the goods when…

Q: d. ayable 13. If title to merchandise purchases passes to the buyer when the goods are delivered to…

A: Introduction to Merchandise Merchandise is referred to as the inventory is a good or product that a…

Q: How would you find the invoice amount of merchandise that was returned in

A: When the merchandise is returned, The invoice amount of return will be credited to the customer's…

Q: When recording a purchase of inventory on credit, which accounts are typically affected? A) Debit…

A: When assets or expenses increases it should be debited and when decreases it should be…

Q: an entry for a purchase return will include a. a debit to inventory b. a debit to sales returns and…

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

Q: Requirement a. What are the accounting requirements for a correct sales cutoff? A. A shipment…

A: Revenue shall be recognition according to accounting standards. Following is the condition to…

Q: 6) Which of the following are the normal baiances of Sales, Sales discounts, and Sales returms and…

A: Introduction: Accounting: Accounting is an art of recording , classifying and summarising and…

Q: a debit to Accounts Payable and a credit to Merchand

A: A perpetual inventory system is an inventory management approach that uses an inventory management…

Q: Using a perpetual system, the entry to record the sale of merchandise on account includes a a.…

A: Step 1: The sale of merchandise on account simply means that the goods have been sold on credit.…

Q: What account balance is not used to computer the cost of good sold? a. Sales b. Purchased c.…

A: Calculate the cost of goods sold as follows: Cost of goods sold = Opening inventory + Purchases -…

Q: The price a business pays for goods it purchases to sell is called: A. markup B. purchase price C.…

A: Any item that is displayed for sale and intended to be sold to customers in exchange for a profit is…

Q: Decreases in the seller's receivable from a customer's return of merchandise or from granting the…

A: Seller is the person who sells goods and services to customers. Customers are the persons who buys…

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

When should revenue from the sale of merchandise normally be recognized? A)When the customer takes possession of the merchandise. B)When the customer takes possession of the merchandise, if sold for cash, or when payment is received, if sold on credit. C)Either on the date the customer takes possession of the merchandise or on the date on which the customer pays. D)When the customer pays for the merchandise.
The trade discount on purchases is recorded A. O When it is received B.When the inventory is purchased C.When the inventory is sold D. O Not at all recorded in the books
Multiple choice
If a customer purchases merchandise on credit and returns the defective merchandise beforepayment, what accounts would recognize this transaction?A. sales discount, cashB. sales returns and allowances, cashC. accounts receivable, sales discountD. accounts receivable, sales returns and allowances
Using a perpetual inventory system, the return to their supplier of merchandise purchased on account includes a(n) _____. a.increase in Merchandise Inventory b.decrease in Merchandise Inventory c.increase in Sales d.decrease in Sales
Terminology Match each phrase with its definition. A. Sales discount B. Credit period C. Discount period D. FOB destination E. FOB shipping point F. Gross profit G. Merchandise inventory H. Purchases discount 1. 2. 3. 4. 5. 6. 7. 8. Goods a company owns and expects to see to its customers. Time period that can pass before a customer's full payment is due. Seller's description of a cash discount granted to buyers in return for early payment. Ownership of goods is transferred when the seller delivers goods to the carrier. Purchaser's description of a cash discount received from a supplier of goods. Difference between net sales and the cost of goods sold. Time period in which a cash discount is available. Ownership of goods is transferred when delivered to the buyer's place of business. 1
The "dual nature of merchandise transactions" as described in this chapter means every business transaction affects both a/an __________ and a/an ____________. Group of answer choices income statement; balance sheet debit entry and a credit entry buyer; seller asset; expense
The journal entry to record a return of merchandise purchased on account under a perpetual inventory system would credit Accounts Payable. Purchase Returns and Allowances. Sales Revenue. Inventory.