Question
Asked Dec 13, 2019
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Centex Sound Systems purchased merchandise inventory costing $8,000 from Flower Co. on account. Where should Centex record this transaction, and what account is credited?

  • Cash payments journal; credit Cash.
  • Sales journal; credit Sales Revenue.
  • Purchases journal; credit Accounts Payable.
  • General journal; credit Merchandise Inventory.
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Expert Answer

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The appropriate answer is option (c). The recording of purchase of merchandise inventory on account is done in the purchases journal and accounts pay...

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