**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

Which of the following entries would be made to record the purchase of inventory on account, if a company uses the perpetual inventory system? A. a debit to Purchases and a credit to Accounts Payable B. a debit to Accounts Payable and a credit to Merchandise Inventory C. a debit to Merchandise Inventory and a credit to Accounts Payable D. a debit to Accounts Payable and a credit to Purchases
Using a perpetual system, the entry to record the sale of merchandise on account includes a a. Debit to sales b. Credit to merchandise inventory c. Credit to accounts receivable d. Debit to merchandise inventory.
The entry to record the sale of goods on account uses a perpetual system and comprises a
When recording purchase returns and purchase allowances under the periodic inventory system, what account is used?
Describe the accounting treatment for merchandise returns.
Assuming a periodic inventory system is used, the entry to record a purchase of merchandise on credit includes: Multiple Choice a debit to Purchases and a credit to Accounts Receivable. a debit to Purchases and a credit to Accounts Payable. a debit to Accounts Payable and a credit to Purchases. a credit to Purchases and a credit to Accounts Payable.
Explain how the sale of inventory on account is recorded under a periodic system. How does this differ from the recording under a perpetual system?
Is purchases is the account to be debited upon purchase of merchandise under the perpetual inventory system?
How do you determine the invoice of merchandise returned?
If a company uses a periodic inventory system, which of the following entry or entries are required to record the sale of merchandise on account? a.debit Cost of Goods Sold; credit Inventory b.debit Cost of Goods Sold; credit Purchases c.debit Cash, credit Sales Revenue d.debit Accounts Receivable, credit Sales Revenue
What accounts are used to recognize a retailer’s purchase from a manufacturer on credit?A. accounts receivable, merchandise inventoryB. accounts payable, merchandise inventoryC. accounts payable, cashD. sales, accounts receivable
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.