A company using a perpetual inventory system that returns goods previously purchased on credit would   1. debit Accounts Payable and credit Inventory. 2. debit Accounts Payable and credit Purchases.   why is it credit inventory instead of purchases? In other words I know the answer is 1 but why?

Q: 4. Which accounts are affected in the closing process under a perpetual inventory system? Oincome…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: The entry to record inventory shrinkage under a perpetual inventory system would include a debit to:…

A: Explanation: When There is Inventory shrinkage Under the perpetual inventory system The following…

Q: When using a perpetual inventory system, the journal entry to record the cost of goods sold is:…

A: Perpetual inventory system reports the inventory units on regular basis.

Q: Indicate whether the following statements are true or false. 1. A merchandising company reports…

A: 1) This statement is True. As Service Based Companies do not sell the products so there Income…

Q: What is the main source of income for a buying and selling company? 2. Between the operational cycle…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: 4. What are the important factors in using a perpetual inventory system

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

Q: Which one of the following statements is true regarding the cost of sales, if the perpetual…

A: The perpetual inventory system is the company where the company counts and records the inventory on…

Q: When the perpetual inventory system is used, the inventory sold is debited to a. Cost of Merchandise…

A: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…

Q: 1. One of the assessments made in credit sales is unwillingness to pay, please explain what is meant…

A: Note : As per the guidelines, only first question will be answered. Kindly post the remaining parts…

Q: Using a perpetual inventory system, the purchase of inventory on account would be recorded as a.…

A: Under perpetual inventory system, when inventory are purchased on account, then purchases account is…

Q: Which of the following accounts is used in the periodic inventory system but not used in the…

A: Periodic inventory system:   A periodic inventory system is one of the forms of inventory valuation.…

Q: Which of the following transactions would not result in an adjustment to the inventory account under…

A: Sale of merchandise on cash and credit and merchandise return all includes inventory account but…

Q: In recording the cost of merchandise sold for cash using a perpetual inventory system, the effect on…

A: The journals represent the record of organizations’ day-to-day business-related transactions which…

Q: Which of the following is not a characteristic of a perpetual inventory system? O Cost of goods sold…

A: Here in this question we are required to answer which of the characteristics is not of perpetual…

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

A: Under perpetual inventory system, inventory account is used instead of purchases account. For every…

Q: JFC Corporation values its inventory by using retail method: 1. How much is the ending inventory at…

A: Retail Inventory Method Retail inventory method which is used to measure the merchandise inventory…

Q: Under the perpetual inventory system, in addition to making the entry to record a sale, a company…

A: Under perpetual inventory system, the decrease in inventory is also recorded every time of sale.

Q: Which of the following accounts is not included in inventory? a. Raw material b. Team c. Finished…

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

Q: Which of the following accounts will not be found in the cost of merchandise sold section of the…

A: Income statement: The income statement is a financial statement that shows the net income earned or…

Q: Under periodic accounting system, when merchandize is sold, entry is posted in which account? *…

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

Q: • Explain why there isn't there a "Cost of merchandise sold" expense for a service business.…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: What effects on a retail store's accounting equation occur when it records merchandise purchased for…

A: Option (d) [ No net effect. ]  for explanation refer step 2

Q: n perpetual method, _______________ will be credited if an item bought will be returned.    Cost of…

A: In perpetual method, Merchandise Inventory will be credited if an item bought will be returned. Cost…

Q: Income Summary is closed to what account Income accounts O Expense Accounts Owner's equity account O…

A: all the incomes and expenses are closed by transferring the accounts to the income statement. The…

Q: ic inventory system wants to remove beginning estimated returns inventory, which of the following…

A: The right answer is option a.Estimated Returns Inventory

Q: Which of the following methods is appropriate for a business whose inventory consists of a…

A: Note: Since we are entitled to answer only one question, we’ll answer the first question. Please…

Q: Which term is applied to the excess of revenue from sales over the cost of merchandise sold? a.net…

A: Income statement: It refers to a financial statement that presents all the income earned by the…

Q: Accounting-201 1. Under a perpetual inventory system part of the merchandise purchased on account at…

A: 1. c) debit to Accounts payable and a credit to Merchandise inventory 2. b) Net Sales and the Cost…

Q: When the merchandise inventory account provides a running balance of the goods on hand, which…

A: The question is related to Inventory system. There are two methods of Inventory.Perpetual inventory…

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: Which of the following statement is FALSE for Merchandise inventory of the Business? a. It is a…

A: Merchandise inventory is classified as a current asset on the balance sheet. Assets normally have a…

Q: 48. Which of the following statements is incorrect about perpetual inventory system? a. Inventory…

A: Inventory is the current asset for the company that is reported under the head current asset in the…

Q: The journal entry to write inventory up to the net realizable value would be​ _______. a) a debit to…

A: SOLUTION- INVENTORY IS AN ASSET AND TO WRITE UP INVENTORY WE HAVE TO CREDIT THE INVENTORY. AS IT…

Q: b) Complete the following table to show how FOB terms apply to merchandise inventory purchased by a…

A: Inventory is the stock that an entity owns for selling in the market. It represents the goods that…

Q: In Perpetual inventory system the loss of goods is included in a. Sales b. Closing stock c.…

A: The perpetual inventory system is a type of inventory valuation in which the inventory sold and…

Q: 3.Which of the following transactions would not result in an adjustment to the inventory account…

A: Perpetual inventory system is the one in which the record relating to the inventory is to be…

Q: Using a perpetual inventory system, the return to their supplier of merchandise purchased on account…

A: When merchandise purchased on credit Inventory accout is debited and accounts payable is credited.…

Q: Which of the following is not a step in the retail inventory method process? a.Compute the cost of…

A: The question is based on the concept of Cost Accounting.

Q: The Cloud Company employs a perpetual inventory system and the McKenzie Corporation uses a periodic…

A: Perpetual and periodic inventory system: In merchandise business, there are two types of inventory…

Q: In a perpetual inventory system, purchases of merchandise on account are recorded by debiting: a…

A: In a perpetual inventory system, Purchases account is not maintained because inventory account is…

Q: When merchandise is bought for​ resale, which of the following accounts would be​ increased?   A.…

A: Merchandise: It can be defined as any type of manufactured goods which may include commercial or…

Q: 1. Under the periodic inventory system, Cost of Goods Sold is treated as an account. 2. Goods should…

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