**Question 7**Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include:- a. credit to Sales- b. debit to Accounts Payable- c. debit to Merchandise Inventory- d. credit to Merchandise Inventory

Name: **Question 7**Using a perpetual inventory system, the entry to record
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: **Question 7**Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include:- a. credit to Sales- b. debit to Accounts Payable- c. debit to Merchandise Inventory- d. credit to Merchandise Inv

The correct answer is: (C) Debit to merchandise inventory A perpetual inventory system keeps track of inventory on a real-time basis, so when merchandise is purchased on account, it is immediately reflected in the inventory account.A perpetual inventory system records inventory purchases in the inventory account as soon as the purchase is made. Therefore, when merchandise is purchased on account, there would be a debit to the inventory account and a credit to accounts payable. Therefore, the answer is: (C) Debit to merchandise inventory

Business

Accounting

Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a a. credit to Sales b. debit to Accounts Payable O c. debit to Merchandise Inventory O d. credit to Merchandise Inventory

Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a a. credit to Sales b. debit to Accounts Payable O c. debit to Merchandise Inventory O d. credit to Merchandise Inventory

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Journalize the following transactions for the Evans Company. Assume the company uses a perpetual inventory system. (a) Sold merchandise for $645. The cost of goods sold was $375. (b) Sold merchandise for $432 and accepted VISA as the form of payment. The cost of goods sold was $195. (c) Sold merchandise on account for $670. The cost of goods sold was $438. (d) Paid credit card fees for the month of $85. Journal Date Description Debit Credit
A Retail Merchandiser was using Perpetual inventory method. The business bought OMR 40,000 of Merchandise under the credit terms of 2/10, n/30. Which account will be Credited in the books of retailer? a. Purchase b. Merchandise inventory c. Accounts Payable d. Accounts receivable
Please answer with detailed working
A company uses the periodic inventory system and records purchases net of discounts. On April 1, the company purchased merchandise worth P 20,000 under terms 2/10, n/30. The journal entry to be made to record the purchase on April 1 will include a: A. credit to accounts payable of P 20,000 B. debit to purchases of P 20,000 C. credit to accounts payable of P 19,600 D. debit to allowance for purchase discounts of P 400
b) Complete the following table to show how FOB terms apply to merchandise inventory purchased by a merchandiser. FOB Term When does the title to the Who pays the goods transfer to the buyer? freight? Shipping Point Destination c) Journalize the following transaction for a merchandiser that uses the perpetual inventory system. Sold goods for cash of $1,200 and on account of $800. Total cost $1,500. Omit explanations.
DETERMINING THE BEGINNING AND ENDING INVENTORY FROM A PARTI ALSPREADSHEET: PERIODIC INVENTORY SYSTEM From the following partial spreadsheet, indicate the dollar amount of beginning and ending merchandise inventory to be used to compute cost of goods sold.
Journalize the following merchandise transactions: (If an amount box does not require an entry, leave it blank.) a. Sold merchandise on account, $12,900, with terms 2/10, net 30. The cost of the merchandise sold was $8,385. Sale Cost b. Received payment within the discount period.
Using the chart of accounts below. Prepare a journal entries of Quarantino Covidap under periodic inventory system.
A company that uses a perpetual inventory system purchased inventory on account and later returned goods worth $900.00 to the vendor. Which of the following would be the correct journal entry to record these returns? OA. Accounts Payable 900 Merchandise Inventory 900 OB. Accounts Payable 900 Purchase Returns 900 OC. Merchandise Inventory 900 Accounts Payable 900 OD. Purchase Returns 900 Accounts Payable 900
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
Bremmer uses a periodic inventory system and the following information is available: Sales Beginning Inventory Ending Inventory Purchases What is the cost of goods sold? Select one: Oa. $230,400 Ob. $96,800 Oc. $133,600 Od. $132,200 $ 230,400 21,200 19,800 132,200
7 Morgan, Incorporated uses a perpetual inventory system and the net method of recording purchases. On May 12, a merchandise purchase of $19,600 was made on credit, 3/10, n/30. The journal entry to record this purchase is: Multiple Choice Account Title Debit Credit Merchandise Inventory 19,600 Accounts Payable 19,600 Account Title Debit Credit Purchases 19,600