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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.
What else can I help you with?
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 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 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 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 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.
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
How do you explain customer debited in account?
Customer debited in an account refers to a transaction where a customer's account balance is reduced due to a withdrawal, payment, or charge. This action reflects a decrease in the funds available to the customer, often resulting from purchases or fees. It is essential for maintaining accurate financial records and ensuring proper account management. Understanding this concept helps both customers and businesses track their financial activities effectively.
What type of account is Merchandise Inventory?
Merchandise Inventory is an asset account that shows up on the balance sheet.
What is the entry to record the return of merchandise from a customer?
To record the return of merchandise from a customer, you would typically make the following journal entry: debit the Sales Returns and Allowances account to recognize the return, and credit Accounts Receivable (or Cash, if the customer was refunded) to reduce the amount owed by the customer. This entry reflects the decrease in revenue due to the return of goods. Additionally, if the merchandise is returned to inventory, you may also need to debit Inventory and credit Cost of Goods Sold accordingly.
