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When using a perpetual inventory system why are discounts credited to merchandise inventory?
The discounts reduce the cost of the merchandise inventory.
Under a perpetual inventory system acquisition of merchandise for resale is debited to?
Merchandise Inventory account
What inventory system uses the merchandise inventory as an active account?
Perpetual
In a perpetual inventory system a return of defective merchandise by a purchaser is recorded by crediting what?
inventory
When the perpetual inventory system is used the inventory sold is shown on the income statement as?
cost of merchandise sold.
When using a perpetual inventory system why are discounts credited to merchandise inventory?
The discounts reduce the cost of the merchandise inventory.
Under a perpetual inventory system acquisition of merchandise for resale is debited to?
Merchandise Inventory account
What inventory system uses the merchandise inventory as an active account?
Perpetual
In a perpetual inventory system a return of defective merchandise by a purchaser is recorded by crediting what?
inventory
When the perpetual inventory system is used the inventory sold is shown on the income statement as?
cost of merchandise sold.
When merchandise purchased on account is returned under the perpetual inventory system the buyer would debit Merchandise Inventory?
When merchandise purchased on account is returned under the perpetual inventory system, the buyer debits Merchandise Inventory to reflect the return of goods, effectively increasing the inventory balance. Simultaneously, the buyer would credit Accounts Payable to decrease the liability owed to the supplier. This dual entry maintains accurate records of both inventory and liabilities in real-time.
When purchases of merchandise are made for cash under the perpetual inventory system the transaction would go?
Under the perpetual inventory system, when merchandise is purchased for cash, the transaction is recorded by debiting the Inventory account and crediting the Cash account. This reflects the increase in inventory and the decrease in cash due to the purchase. The perpetual system continuously updates inventory records with each purchase or sale, providing real-time inventory levels.
In a perpetual inventory system when merchandise is returned to the supplier cost merchandise sold is debited as part of the transaction?
In a perpetual inventory system, when merchandise is returned to the supplier, the cost of merchandise sold is not debited; instead, the inventory account is credited to reflect the return of the goods. The transaction typically involves debiting the accounts payable or cash account, depending on whether the return is for credit or a refund. This adjustment ensures that the inventory balance remains accurate and reflects the actual amount of goods on hand.
What is theMerchandise Inventory?
Merchandise Inventory is a stock of products on hand of a merchandise company intended for sale.
Is merchandise the same as inventory?
Merchandise and inventory are related concepts but not exactly the same. Merchandise refers specifically to the goods that a business buys for resale to customers, while inventory encompasses all items a company holds for sale, including raw materials, work-in-progress, and finished goods. Therefore, all merchandise is part of inventory, but not all inventory is merchandise.
What type of account is Merchandise Inventory?
Merchandise Inventory is an asset account that shows up on the balance sheet.
When using perpetual inventory system the jounal entry to record the cost of merchandise sold is?
In a perpetual inventory system, the journal entry to record the cost of merchandise sold involves debiting the Cost of Goods Sold (COGS) account and crediting the Inventory account. For example, if the cost of merchandise sold is $1,000, the entry would be: Debit: Cost of Goods Sold $1,000 Credit: Inventory $1,000 This entry reflects the reduction in inventory and recognizes the expense associated with the goods that have been sold.
