A Company buys inventory on account, to be paid within 30 days. The entry to record that transaction should be: Group of answer choices A debit to inventory and a credit to accounts payable A debit to accounts payable and a credit to inventory

A Company buys inventory on account, to be paid within 30 days. The entry to record that transaction should be: Group of answer choices A debit to inventory and a credit to accounts payable A debit to accounts payable and a credit to inventory

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 11MC: A retailer returns $400 worth of inventory to a manufacturer and receives a full refund. What...

See similar textbooks

Related questions

Q: Under a perpetual inventory system a. accounting records continuously disclose the amount of…

A: Under the perpetual inventory system, purchases and sales are continuously updated to the inventory.

Q: When a customer returns goods, the merchandiser will:

A: Inventory: Inventory refers to the raw materials, work-in process, and the finished goods…

Q: Week 6 Fiona Sporty uses a purchases journal, a cash payments journal, a sales journal, a cash…

A: Special Journals : Besides the original books of accounts, there are specialized journal…

Q: receivable from the customer in transaction b. . Following the taking of a physical inventory at…

A: Income statement is a statement which records the revenue and expenses of an undertaking for a…

Q: The following selected account balances appeared on the financial statements of the Washington…

A: The cash flow statement assesses a corporation's ability to handle its cash balance, or how…

Q: 2. The entry to record the return of $25 of inventory to a supplier under the perpetual inventory…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: It is a document received by your business when you purchase goods from supplier and asking 60 days…

A: The question is multiple choice question Required Choose the Correct Option

Q: e entry to record the return of $250 of inventory to a supplier under the perpetual inventory system…

A: Solution: The entry to record the return of $250 of inventory to a supplier under the perpetual…

Q: The average collection period determines the number of a.days it takes to sell the inventory.…

A: Average collection period is the time taken by an entity to collect from its accounts receivables…

Q: The journal entry to record the return of inventory purchased on credit under a periodic inventory…

A: One of the main feature of periodic system of inventory is all the adjustments are made at end of…

Q: Question 3 Below is the additional information which was left out by the accounts clerk. The…

A: Statement of Comprehensive Income Changes in net equity except those resulting from investments by…

Q: Match the following transactions to the special journal you would use to record them: Cash receipts…

A: All the transactions where cash is received is recorded in the Cash receipts book All the…

Q: . The form issued by a seller to inform a buyer that a credit has been made to accounts receivable.…

A: Discounts are the amounts or allowances that are to be allowed on invoice price and partial payments…

Q: Saniz Co is a supplier of instant hand sanitizer. Saniz Co uses the periodic inventory system. The…

A: Debit what comes in, Credit what goes out. Debit the receiver, Credit the giver. Debit all expenses…

Q: You purchase goods on an invoice dated July 27 with terms of 3/10 EOM. Determine (a) the last day of…

A: A time period of discount which is available for the customer for reducing the cash payment by cash…

Q: Alpha company is a trading company that purchases and sales fruits and vegetables. During the year…

A: 4) Freight in is charged to its customer includes freight in expense and accounts payable account…

Q: At the end of the accounting period, the correct entry in the general journal to adjust for…

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: a. Prepare the cost flow assumption table for Hasellhouf Company's merchandise inventory using FIFO…

A: The first question is answered for you. Please resubmit specifying the question number you want…

Q: A company that uses a perpetual inventory system purchased inventory on account and later returned…

A: Perpetual inventory system: It is a method of inventory management that records real time…

Q: Record the journal entries on each transaction. Refer to the Chart of Accounts for exact wording of…

A: The journal entries are prepared to keep the record of day to day transactions of the business. The…

Q: ermine the inventory period of MS Manufacturer's from the information provided on the attached…

A: Given Cash conversion cycle = 73 days Debtor collection period = 45 days Creditors repayment period…

Q: Assume that a perpetual inventory system using the NET METHOD is in use. Which of the following…

A: Step 1: As per the net method of perpetual inventory system, when a customer will return the goods…

Q: Which of the following accounts would be closed at the end of the year using the perpetual inventory…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: When merchandise sold is assumed to be in the order in which the purchases were made, the company is…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want a…

Q: Under the perpetual system of inventory, the Inventory account is debited at each purchase and…

A: Perpetual Inventory System:-it is a system of inventory valuation where inventory gets calculate on…

Q: From the following list, identify the accounts that should be closed to Tim Button, Capital at the…

A: Closing entries: These refer to the journal entries that are recorded at the end of an each…

Q: On June 5, Staley Electronics purchases 200 units of inventory on account for $19 each, with terms…

Q: It is a document received by the business when they purchase goods from supplier and asking 60 days…

A: When purchase is returned , debit note is issued

Q: Which of the following accounts would be closed at the end of the year using the perpetual inventory…

A: Perpetual Inventory System refers to the inventory system that maintains the detailed records of…

Q: 1 Which of the following statements about perpetual merchandising activities is true? (Identify the…

A: Hi student Since there are multiple question, we will answer only first question. If you want…

Q: If a company uses a periodic inventory system, which of the following entry or entries are required…

A: When a physical inventory count is done, a periodic inventory system simply updates the general…

Q: PLEASE SHOW ALL WORK You purchase goods on an invoice dated July 27 with terms of 3/10 EOM.…

A: The invoice is prepared to record the amount due from customers agains credit sales and it also…

Q: Alpha company is a trading company that purchases and sales fruits and vegetables. During the year…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: supplies expense, and advertising expense. It categorizes the remaining expenses as general and…

A: Income Statement - This statement shows the income earned and loss incurred by the organization in…

Q: Identify the account that is debited, when business makes credit purchases of goods worth OMR…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Enter the letter for each term in the blank space beside the definition that it most closely…

A: Meaning of Sales discount Sales discount is the amount of discount given on the amount of sales made…

Q: Required a. Compute the accounts receivable turnover for Year 3. b. Compute the inventory turnover…

A: Solution:- a)Calculation of the accounts receivable turnover for Year 3 as follows:- This ratio…

Q: (a) (b) (c) (d) Explain what is meant by "cost of sales". Calculate the cost of sales for the month…

A: FIFO stans for First in First Out. It is one of a method of valauation of inventory. Under this…

Q: Indicate the best answer(s) for each question: Which of the following statements about perpetual…

A: Under perpetual inventory system, the inventory record is maintained with every sale and purchase.

Q: A retailer returns $400 worth of inventory to a manufacturer and receives a full refund.…

A: Inventory is one of the important current asset for the business. It can be in form of raw…

Q: A company sells merchandise on account, to be paid by the customer within 30 days. This transaction…

A: Under double entry accounting system, journal entries contain debit and credit columns. These…

Q: Sarasota Company has the following account balances: Sales Revenue $242,100, Sales Discounts $3,310,…

A: Closing entries are those entries which are passed at the end of the period to close revenue…

Question

A Company buys inventory on account, to be paid within 30 days. The entry to record that transaction should be:

Group of answer choices

A debit to inventory and a credit to accounts payable

A debit to accounts payable and a credit to inventory

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Prepare journal entries to record the following transactions. Create a T-account for Accounts Payable, post any entries that affect the account, and calculate the ending balance for the account. Assume an Accounts Payable beginning balance of $7,500. A. May 12, purchased merchandise inventory on account. $9,200 B. June 10, paid creditor for part of previous months purchase, $11,350
A firm is preparing to make adjusting entries at the end of the accounting period. The balance of the merchandise inventory account is 200,000. If the firm is using the periodic inventory system, what does this balance represent?
Prepare journal entries to record the following transactions. A. January 22, purchased, an asset, merchandise inventory B. on account for $2,800. C. February 10, paid creditor for part of January 22 purchase, $1,600
Sold goods for $650, credit terms net 30 days. Which journal would the company use to record this transaction? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journal
Prepare journal entries to record the following transactions. Create a T-account for Accounts Payable, post any entries that affect the account, and tally ending balance for the account. Assume an Accounts Payable beginning balance of $5,000. A. February 2, purchased an asset, merchandise inventory, on account, $30,000 B. March 10, paid creditor for part of February purchase, $12,000
Which of the following describes features of a perpetual inventory system? A. Technology is normally used to record inventory changes. B. Merchandise bought is recorded as purchases. C. An adjusting journal entry is required at year end, to match physical counts to the asset account. D. Inventory is updated at the end of the period.
A retailer returns $400 worth of inventory to a manufacturer and receives a full refund. What accounts recognize this return before the retailer remits payment to the manufacturer? A. accounts payable, merchandise inventory B. accounts payable, cash C. cash, merchandise inventory D. merchandise inventory, cost of goods sold
Post the following November transactions to T-accounts for Accounts Payable and Inventory, indicating the ending balance (assume no beginning balances in these accounts). A. purchased merchandise inventory on account, $22,000 B. paid vendors for part of inventory purchased earlier in month, $14,000 C. purchased merchandise inventory for cash, $6,500
MacDonald Bookshop had the following transactions that occurred during February of this year: Required 1. Journalize the transactions for February in the cash payments journal. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journal. Prove the equality of the debit and credit totals.
Beginning inventory, purchases, and sales for Item Gidget are as follows: Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of merchandise sold on September 27 and (b) the inventory on September 30.
MacDonald Bookshop had the following transactions that occurred during February of this year: Required 1. Journalize the transactions for February in the cash payments journal. Assume the periodic inventory method is used. 2. Total and rule the journal. 3. Prove the equality of the debit and credit totals.
Beginning inventory, purchases, and sales for Item Widget are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on March 25 and (b) the inventory on March 31.