Q14 Under perpetual inventory system- what isthe journal entry when payment is made onaccounts payableа.Dr Accounts payableCash CrO b.Dr CashAccounts payable CrС.Dr CashAccounts receivables Crd.Dr Accounts receivableCash Cr

Under perpetual inventory system- what is the journal entry when payment is made on accounts payable O a. Dr Accounts payable Cash Cr b. Dr Cash Accounts payable Cr ос. Dr Cash Accounts receivables Cr d. Dr Accounts receivable Cash Cr

Under perpetual inventory system- what is the journal entry when payment is made on accounts payable O a. Dr Accounts payable Cash Cr b. Dr Cash Accounts payable Cr ос. Dr Cash Accounts receivables Cr d. Dr Accounts receivable Cash Cr

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 24MC: Which of the following accounts are used when recording a purchase using a periodic inventory...

See similar textbooks

Related questions

Q: 28-Which account will be debited to record the purchase of merchandise on credit under periodic…

A: Under periodic inventory method, inventory records are not updated on real time basis. These are…

Q: 6. when a cormpany returns merchandise previously purchased on account, the entry to record the…

A: Hi student Since there are multiple questions, we will answer only first question. Whenever business…

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: Using the five journals as named here: Sales, Purchases, Cash Receipts, Cash Disbursements, and…

A: Purchase Journal in accounting and book keeping is a log book to record transactions related to the…

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

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold on the…

Q: The journal entry to record the purchase of supplies on accounta. credits Supplies and debits…

A: Journal entries Journal entries are the transactions that are recorded in the primary book. They are…

Q: Assignment: Draw the T account of Purchases, Sales, Mr. D, Mr. E, Return inwards, Return outwards,…

A: Ledger is collection of all the accounts in an accounting system. When every journal is posted to…

Q: ow, record journal entries for the following transactions, which uses the perpetual inventory…

A: Perpetual Inventory System: A perpetual inventory system is a method of inventory management that…

Q: a. Prepare the entries to record sales and collections during the period b. Prepare the entry to…

A: Increase in assets and expense is recorded by debiting them and a decrease is recorded by crediting…

Q: Journal entries commonly processed as part of the purchases and cash disbursements can include: A…

A: Purchases of the business includes goods and services purchased for the business. It can be on cash…

Q: The Ledger related to expenses is entered in which one of the ledger? Sales Ledger Purchase return…

A: Expenses are not recorded in a specific ledger.

Q: Which journal entry is correct when there is a sale under a perpetual inventory and FOB shipping…

A: Solution- Accounts payable -------------------DR To Merchandise inventory. (To…

Q: The adjusting entry to take up accrued expenses is recorded in the: (A purchases journal B general…

A: Adjusting entries are those journal entries which are passed at the end of accounting period in…

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: 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: 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: 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: Rent A/c Debit; Cash A/c Credit. For this Journal, which item will appear on the Credit side of Cash…

A: Ledgers are used for classifying the recorded general journal entries into separate account like…

Q: Using the five journals as named here: Sales, Purchases, Cash Receipts, Cash Disbursements, and…

A: Purchase Journal: A purchase journal is a specialized accounting journal and it is also a prime…

Q: Journalize these transactions of september assuimg the perpetual inventory system is being used…

A: Methods of Inventory System: 1. Periodic Inventory System 2. Perpetual Inventory…

Q: In a perpetual system, what would be the journal entry for a sales return. (a) Dr. Sales return and…

A: Journal entry is a process of recording the business transactions in the books of accounts for the…

Q: indicate in which journal the following transactions are most likely to be recorded. 1. purchased…

A: Definition: Journal entry: Journal entry is a set of economic events that can be measured in…

Q: When company uses special journal , the transaction of settling company liabilities record in.. a.…

A: Journal is the recording of financial transactions according to the dual entity concept and it helps…

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: 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: Using the five journals as named here: Sales, Purchases, Cash Receipts, Cash Disbursements, and…

A: Journal entry record the transaction by using double entry system and affects both debit and credit…

Q: GENERAL LEDGER Cash Date Account No. Balance 11 Item Post Ref Debit Credit Debit Credit

A: Solution:

Q: Is purchases is the account to be debited upon purchase of merchandise under the perpetual inventory…

A: Perpetual Inventory System It is the most important part of the business to enter the transactions…

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: Using a perpetual system, the entry to record the sale of merchandise on account includes a a.…

A: Step 1: The sale of merchandise on account simply means that the goods have been sold on credit.…

Q: When closing income statement accounts having debit balances, which of the following accounts will…

A: In Income Statement expenses has debit balance and Revenue has credit balance. The detailed…

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: For each account, indicate whether it appears in the general ledger or the subsidiary ledger.…

A: Indicate whether it appears in General Ledger or Subsidairy Ledger.

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: For each of the following items, identify whether the item is considered current or noncurrent,…

A: All of a company's assets that are expected to be sold, consumed, utilized, or expended within one…

Q: Journal entry worksheet A C E F > Record the summary journal entry showing cash paid for insurance…

A: Journal entry: This is the first step to record accounts. It is written in the same order in which…

Q: The journal entry for the purchase of inventory on account using the perpetual inventory system is

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

Q: Which of the following items is considered an original source document? Select one: a. accounts…

A: Source document In general source document which are used for the business transaction of the entity…

Q: Which one of the following commences on the day inventory is purchased and ends on the day the…

A: Inventory period: It is a measure of the average number of days the inventory is held.

Q: Which of the following items would be recorded in the purchases journal? A. supplies purchased on…

A: Purchase journal is the journal specifically to record purchase transactions. It shows all the…

Q: a. Prepare a statement correcting the balance at 31 January 2018 on the Purchases Ledger Control…

A: The main difference between Purchase Ledger and Purchase Ledger Control a/c is that the Purchase…

Q: The journal entry to record the purchase of inventory on account is:

A: The journal entry to record the purchase of inventory on account is: Answer - A Debit…

Q: Which of the following accounts has a normal debit balance? a.Accounts Payable b.Sales c.Interest…

A: Accounts Payable: Accounts Payable means money owed by a company to its creditors. It is an current…

Q: Transactions involved in the purchases and cash disbursements cycle include: A Debit inventory,…

A: Purchases and disbursements cycle is one of the important cycle used in accounting information…

Q: You must enter the journal names, header titles, and account names exactly as written above (or in…

A: Inventory system is defined as the part of accounting system were the value of inventory is computed…

Q: ceives a credit terms of : e Inventory account?

A: Given terms as, 2/10 and n/30

Question

Q14

Under perpetual inventory system- what is
the journal entry when payment is made on
accounts payable
а.
Dr Accounts payable
Cash Cr
O b.
Dr Cash
Accounts payable Cr
С.
Dr Cash
Accounts receivables Cr
d.
Dr Accounts receivable
Cash Cr

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Refer to RE6-3. Assume Long records accounts receivable and sales using the net price method. Prepare the related journal entries for Long.
Under the perpetual inventory system, how does the seller record sales made on account?
Which of the following accounts are used when recording a purchase? A. cash, merchandise inventory B. accounts payable, merchandise inventory C. A or B D. cash, accounts payable
Allowance method Journalize the following transactions, using the allowance method of accounting for uncollectible receivables:
Using the perpetual inventory system, what account is debited when a business finds that its physical count of inventory is greater than the recorded amount?
Refer to RE6-5. Assume Longmire uses a perpetual inventory system. Prepare the related journal entries for Longmire Sons.
Rules of debit and credit for periodic inventory accounts Complete the following table by indicating for A through G whether the proper answer is debit or credit:
Brown Inc. records purchases in a purchases journal and purchase returns in the general journal. Record the following transactions using a purchases journal, a general journal, and an accounts payable subsidiary ledger. The company uses the periodic method of accounting for inventory.
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.
Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual inventory system b. Periodic inventory system c. Both perpetual and periodic inventory systems Required: Match each option with one of the following: 1. Only revenue is recorded as sales are made during the period; the cost of goods sold is recorded at the end of the period. 2. Cost of goods sold is determined as each sale is made. 3. Inventory purchases are recorded in an inventory account. 4. Inventory purchases are recorded in a purchases account. 5. Cost of goods sold is determined only at the end of the period by subtracting the cost of ending inventory from the cost of goods available for sale. 6. Both revenue and cost of goods sold are recorded during the period as sales are made. 7. The inventory is verified by a physical count.
Using the information provided in RE8-4, prepare the journal entry to record the write-down of inventory for Paul Corporation assuming that it uses the allowance method instead of the direct method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down if inventory.
Purchase-related transactions Based on the data presented in Excrd.sc 6-14, journalize Ha I boa Co.s entries for (a) the purchase, (b) the return of the merchandise for credit, and (c) the payment of the invoice.