**Journal Entry for Purchases on Account Using the Perpetual Method**When purchases of merchandise are made on account and the perpetual method is used, the transaction would be recorded with the following entry:A) Debit Accounts Payable, credit Merchandise Inventory. B) Debit Merchandise Inventory, credit Accounts Payable. C) Debit Merchandise Inventory, credit Cash. D) Debit Purchases, credit Sales.

If a business entity purchases the merchandise Inventory on account, hereunder double-entry system…

When purchases of merchandise are made on account and the perpetual method is used, the transaction would be recorded with the following entry: debit Accounts Payable, credit Merchandise Inventory. debit Merchandise Inventory, credit Accounts Payable. debit Merchandise Inventory, credit Cash. debit Purchases, credit Sales.

When purchases of merchandise are made on account and the perpetual method is used, the transaction would be recorded with the following entry: debit Accounts Payable, credit Merchandise Inventory. debit Merchandise Inventory, credit Accounts Payable. debit Merchandise Inventory, credit Cash. debit Purchases, credit Sales.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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**Journal Entry for Purchases on Account Using the Perpetual Method**

When purchases of merchandise are made on account and the perpetual method is used, the transaction would be recorded with the following entry:

A) Debit Accounts Payable, credit Merchandise Inventory.
B) Debit Merchandise Inventory, credit Accounts Payable.
C) Debit Merchandise Inventory, credit Cash.
D) Debit Purchases, credit Sales.

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