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When a customer charges merchandise he purchases what account are affected and how?
When a customer charges merchandise, two accounts are affected: Accounts Receivable and Sales Revenue. Accounts Receivable increases, reflecting the amount owed by the customer, while Sales Revenue also increases, indicating the income generated from the sale. This transaction reflects the company's right to receive payment in the future while recognizing the sale has occurred.
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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.
When merchandise is purchased to resell to customer's it is recorded in the account entitled?
merchandise inventory
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 accounts affected in received payment on account?
"what accounts are affected and how when a payment on account is received from a customer
What two accounts are affected by the adjusting entry Merchandise Inventory?
The two accounts affected by the adjusting entry for Merchandise Inventory are the Merchandise Inventory account and the Cost of Goods Sold (COGS) account. When the inventory is adjusted to reflect the actual count or value, the Merchandise Inventory account is updated to show the correct ending balance, while the COGS account is adjusted to account for any changes in the total cost of inventory sold during the period. This adjustment ensures accurate financial reporting and inventory management.
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.
When merchandise is purchased to resell to customer's it is recorded in the account entitled?
merchandise inventory
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 accounts affected in received payment on account?
"what accounts are affected and how when a payment on account is received from a customer
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
How does a PayPal merchant account work?
Essentially, a PayPal merchant account goes between you bank account and the customer, giving you the chance to charge for merchandise. The money goes through PayPal, and you can draw out into your account
What accounts are affected and how when merchandise is purchased for cash?
no accounts, the only time an account would be affected is when you withdraw or deposit money into/from it, cash is nearly untraceable and does not affect your bank accounts
What type of account is Merchandise Inventory?
Merchandise Inventory is an asset account that shows up on the balance sheet.
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.
Which account is debit when you purchase merchandise?
account payable
What is purchases account?
Purchase account is a record account in which all inventory purchases are noted. This is commonly used with the periodic inventory method.
What is the normal balance of the merchandise inventory account?
Merchandise Inventory is an asset account, so the normal balance is Debit.
