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What is the account classifaction of purchases?
It is a cost account because it is in the cost of merchandise division in the chart of accounts.
How should a return of merchandise purchased on account be recorded?
As a debit to the accounts payable account and a credit to the purchases returns and allowances account
What adjusting entry is entered on a work sheet when the ending merchandise inventory is less than the beginning value?
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.
What is the price at which a business purchases merchandise is called the?
cost
When using a perpetual inventory system why are discounts credited to merchandise inventory?
The discounts reduce the cost of the merchandise inventory.
What is the account classifaction of purchases?
It is a cost account because it is in the cost of merchandise division in the chart of accounts.
How should a return of merchandise purchased on account be recorded?
As a debit to the accounts payable account and a credit to the purchases returns and allowances account
What adjusting entry is entered on a work sheet when the ending merchandise inventory is less than the beginning value?
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.
Can you explain the process of how an account is credited and what it means for the account holder?
When an account is credited, it means that money is added to the account. This can happen through deposits, transfers, or other transactions. For the account holder, a credit increases their account balance, giving them more funds to use for purchases, investments, or savings.
Purchased merchandise on account 12000 fob shipping point seller added 485 of prepaid freight charges to the invoice how to journalize in purchases journal?
[debit] Merchandise account 12000 [Debit] Freight in 485 [Credit Accounts payable / cash 12485
What is the price at which a business purchases merchandise is called the?
cost
Has your account been credited?
Yes, my account has been credited.
Are credit cards accepted for merchandise purchases at Hannah Montana concerts?
no
When using a perpetual inventory system why are discounts credited to merchandise inventory?
The discounts reduce the cost of the merchandise inventory.
What accounts are affected and how when one purchases merchandise on account?
When merchandise is purchased on account, the inventory account is increased to reflect the new stock, while accounts payable is also increased, indicating a liability to the supplier. This transaction does not immediately affect cash, as payment will be made later. The purchase will be recorded in the accounting system, impacting the company's balance sheet by increasing both assets and liabilities.
What type of account is Merchandise Inventory?
Merchandise Inventory is an asset account that shows up on the balance sheet.
When seller paid the customer account is?
credited
