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Assets purchased for resale are recorded in which of the following accounts?
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
Is a trade discount on a purchased merchandise recorded in the accounts?
Trade discounts are not entered in the accounting records. They are not considered to be a part of the sale because the exchange agreement was based on the reduced price.
Is inventory shrinkage recorded as an expense?
As a reduction to merchandise inventory
When purchasing merchandise for resale what journal is the transaction recorded in?
journal
Assets purchased for resale are recorded in which of the following accounts?
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
Is a trade discount on a purchased merchandise recorded in the accounts?
Trade discounts are not entered in the accounting records. They are not considered to be a part of the sale because the exchange agreement was based on the reduced price.
Inventory shortage is recorded when?
merchandise is returned to seller
Is inventory shrinkage recorded as an expense?
As a reduction to merchandise inventory
When purchasing merchandise for resale what journal is the transaction recorded in?
journal
When a buyer returns merchasndise purchased for cash the the buyer may record the transaction using the following entry?
When a buyer returns merchandise purchased for cash, the transaction can be recorded with a debit to the Accounts Payable or Purchases Returns and Allowances account and a credit to Cash. This reflects the decrease in cash due to the return of the merchandise. Additionally, if inventory was involved, the Inventory account may also be debited to reflect the return of goods.
In a perpetual inventory system a return of defective merchandise by a purchaser is recorded by crediting what?
inventory
What is A credit sale of merchandise for 112.20?
A credit sale of merchandise for $112.20 refers to a transaction where goods are sold to a customer on credit, meaning the customer is allowed to pay for the merchandise at a later date rather than immediately. In this case, the sale amount is $112.20, which will be recorded as an account receivable for the seller until the customer fulfills the payment. This type of sale is common in retail and business-to-business transactions, allowing customers to manage their cash flow more effectively.
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.
In which special journal would a purchase of merchandise for cash be recorded?
A company that uses special journals should record a transaction involving the purchase of merchandise for cash ia a: Answer: Cash Payments Journal
Cash received from customers as payment for their bills is recorded by a?
cash discount
