Merchandise Inventory is an asset account that shows up on the balance sheet.
account payable
Merchandise Inventory is an asset account, so the normal balance is Debit.
merchandise inventory
the answer is........... account title; cash 2600 merchandise sold 1500
Merchandise Inventory account
Anything bought on account will have an impact on two sides of the accounting equation. Since we "purchased" the merchandise we are receiving, therefore we will Increase our assets (merchandise), since we purchased this item on "account" we will also increase our liabilities (account payable).
It is a cost account because it is in the cost of merchandise division in the chart of accounts.
Two accounts are used - There will be a merchandise account and create an Expense due to Shrinkage Account if an asset of $100 is lost due to shrinkage credit the merchandise account, debit the loss due shrinkage account after that in income statement list under exchange account
As a debit to the accounts payable account and a credit to the purchases returns and allowances account
Perpetual
credit