**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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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
It is used to who is responsible for paying shipping and when the title of the goods passes from seller to buyer: This term will be applicable to a. Discount term b. Credit terms c. Cash term d. Shipping terms
Under the periodic inventory system, the journal entry to record the purchase of merchandise inventory will include a debit to Oa. Merchandise Inventory Ob. Purchases Oc. Accounts Payable Od. Cost of Merchandise Purchased
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
Which of the following is an example of a contra revenue account?A. salesB. merchandise inventoryC. sales discountsD. accounts payable
If each purchase and sale of merchandise is recorded in the inventory and the cost of merchandise sold accounts, the method of accounting for merchandise inventory is the: A perpetual method. B) periodic method. C) gross profit method. D) administrative method.
In the periodic inventory system, all purchases of merchandise during the period is recorded on what account?
Describe the recording process for purchases of merchandise inventory using a Perpetual inventory system.
Which of the following document will be given by the supplier at the time of receipt of cash for the purchase of stationery for OMR 150? a. Receipt b. Debit note c. Sales invoice d. Purchase invoice
Under a perpetual inventory system, acquisition of merchandise for resale is debited to O the Supplies account. O the Cost of Goods Sold account. O the Inventory account. O the Purchases account.