When the perpetual inventory system is used, the inventory sold is debited toa. Cost of Merchandise SoldOb. Merchandise InventoryOc. SalesOd. Supplies Expense

Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…

Answered: When the perpetual inventory system is…

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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If the balance in the inventory account is greater than the physical count, which of the following journal entries is recorded? a.Debit Merchandise Inventory and credit Inventory Short and Over b.Debit Merchandise Inventory and credit Cost of Goods Sold c.Debit Cost of Goods Sold and credit Merchandise Inventory d.Debit Inventory Short and Over and credit Merchandise Inventory
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.
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.
When merchandise is bought for resale, which of the following accounts would be increased? A. Accounts Payable B. Supplies Expense C. Store Equipment D. Merchandise Inventory
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.
Cost of goods sold is given by: Select one: a. Net Purchases + beginning inventory - ending inventory. b. Net purchases + ending inventory - beginning inventory. c. Beginning inventory + accounts payable - net purchases. d. Beginning inventory - net purchases + ending inventory.
What are the two journal entries involved when recording the sale of inventory when using the perpetual inventory system?

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When the perpetual inventory system is used, the inventory sold is debited to a. Cost of Merchandise Sold Ob. Merchandise Inventory Oc. Sales Od. Supplies Expense