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It is a cost account because it is in the cost of merchandise division in the chart of accounts.
As a debit to the accounts payable account and a credit to the purchases returns and allowances account
Merchandise Inventory. The value of merchandise in the trial balance is the amount of inventory on hand at the beginning of the year. No other transactions are posted to this account during the year because every time merchandise if purchased, it is debited to Purchases. Every time inventory is sold, it is credited to Sales.
cost
Purchase Credit Journal Entry is the journal entry passed by the company in the purchase journal of the date when the company purchases any inventory from the third party on the terms of credit. The purchases account will be debited. The creditor’s account or account payable account will be credited to the company’s books of accounts. visit our page : ieqsgroup .com/about-us
It is a cost account because it is in the cost of merchandise division in the chart of accounts.
As a debit to the accounts payable account and a credit to the purchases returns and allowances account
Merchandise Inventory. The value of merchandise in the trial balance is the amount of inventory on hand at the beginning of the year. No other transactions are posted to this account during the year because every time merchandise if purchased, it is debited to Purchases. Every time inventory is sold, it is credited to Sales.
[debit] Merchandise account 12000 [Debit] Freight in 485 [Credit Accounts payable / cash 12485
cost
Purchase Credit Journal Entry is the journal entry passed by the company in the purchase journal of the date when the company purchases any inventory from the third party on the terms of credit. The purchases account will be debited. The creditor’s account or account payable account will be credited to the company’s books of accounts. visit our page : ieqsgroup .com/about-us
no
The discounts reduce the cost of the merchandise inventory.
credited
Merchandise Inventory is an asset account that shows up on the balance sheet.
It is your checking account , but it is debited, not credited.
Purchase account is a record account in which all inventory purchases are noted. This is commonly used with the periodic inventory method.