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joe mamam
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What type of account is Merchandise Inventory?
Merchandise Inventory is an asset account that shows up on the balance sheet.
What is the normal balance of the merchandise inventory account?
Merchandise Inventory is an asset account, so the normal balance is Debit.
Which account is debit when you purchase merchandise?
account payable
When merchandise is purchased to resell to customer's it is recorded in the account entitled?
merchandise inventory
What are the account titles of sold merchandise that cost 1500 for 2600 cash?
the answer is........... account title; cash 2600 merchandise sold 1500
Under a perpetual inventory system acquisition of merchandise for resale is debited to?
Merchandise Inventory account
In the buyers records the purchase of merchandise on account would it increase or decrease assets expenses liabilities?
Anything bought on account will have an impact on two sides of the accounting equation. Since we "purchased" the merchandise we are receiving, therefore we will Increase our assets (merchandise), since we purchased this item on "account" we will also increase our liabilities (account payable).
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.
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.
How to compute loss from shrinkage at cost and at retail?
Two accounts are used - There will be a merchandise account and create an Expense due to Shrinkage Account if an asset of $100 is lost due to shrinkage credit the merchandise account, debit the loss due shrinkage account after that in income statement list under exchange account
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 inventory system uses the merchandise inventory as an active account?
Perpetual
