If a customer purchases merchandise on credit and return the defective merchandise before payment, what accounts would recognize this transaction? Assume the perpetual inventory system is used. A.Sales Discount, Cash B.Accounts Receivable, Sales Discount C.Sales Returns and Allowances, Cash D.Accounts Receivable, Sales Returns and Allowances

Q: Mr. Mohammed use perpetual inventory system makes the following journal entry in his business Debit…

A: Merchadise inventory is debited and Accounts payable is credited where  inventory is purchased on…

Q: Which one of the following transactions is recorded with the same entry in a perpetual and a…

A: With the perpetual system all the sales are directly credited to inventory and all the purchases are…

Q: If a wholesale company provides a discount to NetSolutions for early payment of purchases of…

A: Purchase discount is discount availed by purchaser on early payment of purchases of merchandise on…

Q: Assuming that you are a wholesale merchandiser. You sold goods to retail merchandiser under the…

A: Goods sold to a retail merchandiser on account. The payment terms of 3/10 n/60 shows that goods are…

Q: The journal entry to record a merchandise sold to customers on credit under periodic inventory

A: Answer:                                                                                Journal Entry…

Q: The journal entry to record the payment of merchandise on account with a discount under the Periodic…

A: Periodic inventory method: It is a inventory valuation method. In this method inventory account is…

Q: In recording the cost of merchandise sold for cash, based on data available from perpetual inventory…

A: Journal entry: It is a systematic record of a financial transaction that is recorded in…

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: What effects on a retail store's accounting equation occur when merchandise returned by customers is…

A: Introduction:- The following Accounting Equation used for preparation of balance sheet as follows…

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

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

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 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: When purchases of merchandise are made on account with a perpetual inventory system, the transaction…

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

Q: ssuming that you are a retail merchandiser. You bought goods from wholesale merchandiser under the…

A: Note: 2/10, n/30: Here, 2 represent the discount rate if payment is made within ten days. And if…

Q: Mcq In a perpetual inventory system, the amount of the discount allowed for paying for merchandise…

A: Perpetual inventory system is an inventory system in which all transactions related to inventory are…

Q: Under the perpetual inventory system, a company purchases merchandise on terms 2/10, n/30. The entry…

A: Inventory system of book keeping means where proper books of account relating to inventory has been…

Q: When merchandise that was sold is returned, a credit to sales returns and allowances is made by the…

A: As per perpetual inventory system, inventory records are updated after every transaction.  When…

Q: When granting a sales allowance, is there a return of merchandise inventory from the customer?…

A: Sales allowance is an allowance where reduction in reduction in selling price is granted to customer…

Q: When a retailer sells merchandise to a customer on credit which one of the following accounts is…

A: Selling merchandise to the customer would include two journal entries, one is for selling goods, and…

Q: Under the periodic inventory system, which of the following accounts is debited when inventory is…

A: Solution:- Under the periodic inventory system the following accounts is debited when inventory is…

Q: When merchandise purchased on account is returned under the perpetual inventory system, the buyer…

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

Q: The journal entry to record a merchandise sold to customers on credit under periodic inventory…

A: Periodic inventory system is an inventory system in which all purchase and sale transactions related…

Q: If an accounting manager asks you to delay recording an invoice for the purchase of merchandise…

A: Income statement is prepared by the business organizations so as to know how much amount of gross…

Q: Which of the following is incorrect about the perpetual inventory method? a. purchases are…

A: Perpetual inventory method : Perpetual inventory method records real time transactions of inventory…

Q: A retailer pays for purchased merchandise within the discount window. The retailer would recognize…

A: Accounts Payable - Accounts Payable is the creditor for the company. Company owed some amount for…

Q: The journal entry to record a Purchase of Merchandise Inventory from Supplier for cash under…

A: As per the periodic inventory method, all the inventory related transactions are recorded through…

Q: a debit to Accounts Payable and a credit to Merchand

A: A perpetual inventory system is an inventory management approach that uses an inventory management…

Q: What account balance is not used to computer the cost of good sold? a. Sales  b. Purchased c.…

A: Calculate the cost of goods sold as follows: Cost of goods sold = Opening inventory + Purchases -…

Q: What accounts are used to recognize a retailer's purchase from a manufacturer on credit? Assume the…

A: Perpetual inventory system is a method under which the movement of inventory is recorded at…

Q: When purchases of merchandise are made on account with a perpetual inventory system, the transaction…

A: Correct option is D Debit Merchandise Inventory;credit Account Payable   Reason : Merchandise…

Q: Assuming a periodic inventory system is used, the entry to record a purchase of merchandise on…

A: Assuming a periodic inventory system is used, the entry to record a purchase of merchandise on…

Q: f merchandise sold on account is returned to the seller, the seller may inform the customer of the…

A: Answer -  Correct Answer is - Credit memorandum, Because, A credit note or credit memorandum is a…

Q: Normal balances of merchandise accountsWhat is the normal balance of the following accounts: (a)…

A: Merchandise business is that form of business in which seller purchases goods from some other person…

Q: In a retail business that uses a perpetual inventory system, scanning a bar code does not: O…

A: In a retail business that uses a perpetual inventory system, scanning a bar code does not: Option…

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: • Sales, Purchases, Cash Receipts, Cash Disbursements, and General Using the following as possible…

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

Q: When should revenue from the sale of merchandise normally be recognized? A)When the customer takes…

A: Revenue recognition concept says that when all the risk and reward has been passed on to the buyer…

Q: Which of the following accounts would not appear on a worksheet for a merchandising entity that uses…

A: Periodic inventory system is a system of recording inventory in a way the closing stock is found out…

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

A: When sales will be made company has to increase cost of goods sold cost and has to reduce inventory…

Q: A deduction allowed to wholesalers and retailers from the price of merchandise listed in catalogs is…

A: A deduction allowed to wholesalers and retailers from the price of merchandise listed in catalogs is…

Q: Which of the following is an example of a contra revenue account?A. salesB. merchandise inventoryC.…

A: This account book transaction would be linked to certain associated accounts of a different sort.…

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: Why is the purchase journal used for journalizing the purchase of merchandise for resale on account…

A: Purchase journal is a separate book kept in the company to maintain and track the information of…

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: Under the periodic inventory system, the Purchases account is used to record: a. purchases of any…

A: The periodic inventory system records the cost of goods sold at the end of reporting period instead…