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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.
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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 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.
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.
When merchandise is returned under the perpetual inventory system the buyer would credit a. Accounts Payable b. Merchandise Inventory c. Purchases Returns and Allowances...?
The Buyer would likely perform the following transaction: DR- Account Receivable CR - Merchandise Inventory The Buyer would probably debit CASH if they receive CASH from the Seller instead of having to WAIT on it. The Merchandise Seller would perform the following transaction: DR - Merchandise Inventory CR - Accounts Payable, OR CASH
What is a difference between periodic inventory and perpetual inventory?
periodic takes place on an irregular schedule where perpetual is a constant state of inventory
Which inventory valuation model does not allow control of inventory by visual inspection?
Perpetual system Perpetual system
Is a perpetual inventory system is an effective means of control over inventory?
no
